Correlation Between Artisan Thematic and American Funds
Can any of the company-specific risk be diversified away by investing in both Artisan Thematic and American Funds 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 American Funds 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 American Funds 2065, you can compare the effects of market volatilities on Artisan Thematic and American Funds 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Thematic and American Funds.
Diversification Opportunities for Artisan Thematic and American Funds
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Artisan and American is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Thematic Fund and American Funds 2065 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds 2065 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 American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds 2065 has no effect on the direction of Artisan Thematic i.e., Artisan Thematic and American Funds go up and down completely randomly.
Pair Corralation between Artisan Thematic and American Funds
Assuming the 90 days horizon Artisan Thematic Fund is expected to generate 1.6 times more return on investment than American Funds. However, Artisan Thematic is 1.6 times more volatile than American Funds 2065. It trades about 0.38 of its potential returns per unit of risk. American Funds 2065 is currently generating about 0.28 per unit of risk. If you would invest 2,330 in Artisan Thematic Fund on September 5, 2024 and sell it today you would earn a total of 187.00 from holding Artisan Thematic Fund or generate 8.03% 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. American Funds 2065
Performance |
| Timeline |
| Artisan Thematic |
| American Funds 2065 |
Artisan Thematic and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Thematic and American Funds
The main advantage of trading using opposite Artisan Thematic and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Thematic position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| Artisan Thematic vs. Touchstone Premium Yield | Artisan Thematic vs. Legg Mason Partners | Artisan Thematic vs. Blrc Sgy Mnp | Artisan Thematic vs. Federated Pennsylvania Municipal |
| American Funds vs. T Rowe Price | American Funds vs. Artisan Thematic Fund | American Funds vs. Commonwealth Global Fund | American Funds vs. Omni Small Cap Value |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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