Correlation Between Artisan Thematic and Franklin Income
Can any of the company-specific risk be diversified away by investing in both Artisan Thematic and Franklin Income 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 Franklin Income 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 Franklin Income Fund, you can compare the effects of market volatilities on Artisan Thematic and Franklin Income 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 Franklin Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Thematic and Franklin Income.
Diversification Opportunities for Artisan Thematic and Franklin Income
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Artisan and Franklin is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Thematic Fund and Franklin Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Income 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 Franklin Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Income has no effect on the direction of Artisan Thematic i.e., Artisan Thematic and Franklin Income go up and down completely randomly.
Pair Corralation between Artisan Thematic and Franklin Income
Assuming the 90 days horizon Artisan Thematic Fund is expected to generate 3.15 times more return on investment than Franklin Income. However, Artisan Thematic is 3.15 times more volatile than Franklin Income Fund. It trades about 0.1 of its potential returns per unit of risk. Franklin Income Fund is currently generating about 0.15 per unit of risk. If you would invest 2,210 in Artisan Thematic Fund on September 3, 2024 and sell it today you would earn a total of 313.00 from holding Artisan Thematic Fund or generate 14.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Thematic Fund vs. Franklin Income Fund
Performance |
| Timeline |
| Artisan Thematic |
| Franklin Income |
Artisan Thematic and Franklin Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Thematic and Franklin Income
The main advantage of trading using opposite Artisan Thematic and Franklin Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Thematic position performs unexpectedly, Franklin Income 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 Franklin Income will offset losses from the drop in Franklin Income's long position.| Artisan Thematic vs. Gmo High Yield | Artisan Thematic vs. Maryland Tax Free Bond | Artisan Thematic vs. T Rowe Price | Artisan Thematic vs. California Bond Fund |
| Franklin Income vs. Growth Strategy Fund | Franklin Income vs. Ab Small Cap | Franklin Income vs. Artisan Thematic Fund | Franklin Income vs. Qs Growth Fund |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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