Correlation Between Artisan Thematic and Us Equity
Can any of the company-specific risk be diversified away by investing in both Artisan Thematic and Us Equity 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 Us Equity 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 The Equity Growth, you can compare the effects of market volatilities on Artisan Thematic and Us Equity 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 Us Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Thematic and Us Equity.
Diversification Opportunities for Artisan Thematic and Us Equity
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Artisan and BGGKX is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Thematic Fund and The Equity Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equity Growth 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 Us Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equity Growth has no effect on the direction of Artisan Thematic i.e., Artisan Thematic and Us Equity go up and down completely randomly.
Pair Corralation between Artisan Thematic and Us Equity
Assuming the 90 days horizon Artisan Thematic is expected to generate 2.62 times less return on investment than Us Equity. But when comparing it to its historical volatility, Artisan Thematic Fund is 1.37 times less risky than Us Equity. It trades about 0.2 of its potential returns per unit of risk. The Equity Growth is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 2,448 in The Equity Growth on August 28, 2024 and sell it today you would earn a total of 303.00 from holding The Equity Growth or generate 12.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Thematic Fund vs. The Equity Growth
Performance |
| Timeline |
| Artisan Thematic |
| Equity Growth |
Artisan Thematic and Us Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Thematic and Us Equity
The main advantage of trading using opposite Artisan Thematic and Us Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Thematic position performs unexpectedly, Us Equity 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 Us Equity will offset losses from the drop in Us Equity's long position.| Artisan Thematic vs. John Hancock Financial | Artisan Thematic vs. Vanguard Financials Index | Artisan Thematic vs. Gabelli Global Financial | Artisan Thematic vs. Prudential Jennison Financial |
| Us Equity vs. Ep Emerging Markets | Us Equity vs. Shelton Emerging Markets | Us Equity vs. Sp Midcap Index | Us Equity vs. Doubleline Emerging Markets |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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