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 Small, 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
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Artisan and Artisan is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Thematic Fund and Artisan International Small 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 1.07 times more return on investment than Artisan International. However, Artisan Thematic is 1.07 times more volatile than Artisan International Small. It trades about 0.14 of its potential returns per unit of risk. Artisan International Small is currently generating about 0.05 per unit of risk. If you would invest 1,840 in Artisan Thematic Fund on September 8, 2024 and sell it today you would earn a total of 725.00 from holding Artisan Thematic Fund or generate 39.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Artisan Thematic Fund vs. Artisan International Small
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.| Artisan Thematic vs. Artisan Value Income | Artisan Thematic vs. Artisan Developing World | Artisan Thematic vs. Artisan Small Cap | Artisan Thematic vs. Artisan Floating Rate |
| Artisan International vs. Artisan Value Income | Artisan International vs. Artisan Developing World | Artisan International vs. Artisan Thematic Fund | Artisan International vs. Artisan Small Cap |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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