Correlation Between Artisan Thematic and Artisan International
Can any of the company-specific risk be diversified away by investing in both Artisan Thematic and Artisan International at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Artisan Thematic and Artisan International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Thematic Fund and Artisan International Fund, you can compare the effects of market volatilities on Artisan Thematic and Artisan International and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Artisan Thematic with a short position of Artisan International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Thematic and Artisan International.
Diversification Opportunities for Artisan Thematic and Artisan International
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Artisan and Artisan is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Thematic Fund and Artisan International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan International and Artisan Thematic is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Artisan Thematic Fund are associated (or correlated) with Artisan International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan International has no effect on the direction of Artisan Thematic i.e., Artisan Thematic and Artisan International go up and down completely randomly.
Pair Corralation between Artisan Thematic and Artisan International
Assuming the 90 days horizon Artisan Thematic Fund is expected to generate 1.33 times more return on investment than Artisan International. However, Artisan Thematic is 1.33 times more volatile than Artisan International Fund. It trades about 0.14 of its potential returns per unit of risk. Artisan International Fund is currently generating about 0.09 per unit of risk. If you would invest 1,806 in Artisan Thematic Fund on September 4, 2024 and sell it today you would earn a total of 717.00 from holding Artisan Thematic Fund or generate 39.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Thematic Fund vs. Artisan International Fund
Performance |
| Timeline |
| Artisan Thematic |
| Artisan International |
Artisan Thematic and Artisan International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Thematic and Artisan International
The main advantage of trading using opposite Artisan Thematic and Artisan International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Thematic position performs unexpectedly, Artisan International can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Artisan International will offset losses from the drop in Artisan International's long position.The idea behind Artisan Thematic Fund and Artisan International Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Artisan International vs. Artisan Mid Cap | Artisan International vs. Oakmark International Fund | Artisan International vs. Selected American Shares | Artisan International vs. Dodge International Stock |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Commodity Directory Find actively traded commodities issued by global exchanges |