Correlation Between Artisan Thematic and Growth Allocation
Can any of the company-specific risk be diversified away by investing in both Artisan Thematic and Growth Allocation 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 Growth Allocation 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 Growth Allocation Fund, you can compare the effects of market volatilities on Artisan Thematic and Growth Allocation 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 Growth Allocation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Thematic and Growth Allocation.
Diversification Opportunities for Artisan Thematic and Growth Allocation
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Artisan and Growth is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Thematic Fund and Growth Allocation Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Allocation 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 Growth Allocation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Allocation has no effect on the direction of Artisan Thematic i.e., Artisan Thematic and Growth Allocation go up and down completely randomly.
Pair Corralation between Artisan Thematic and Growth Allocation
Assuming the 90 days horizon Artisan Thematic Fund is expected to generate 1.77 times more return on investment than Growth Allocation. However, Artisan Thematic is 1.77 times more volatile than Growth Allocation Fund. It trades about 0.13 of its potential returns per unit of risk. Growth Allocation Fund is currently generating about 0.11 per unit of risk. If you would invest 1,835 in Artisan Thematic Fund on September 12, 2024 and sell it today you would earn a total of 682.00 from holding Artisan Thematic Fund or generate 37.17% 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. Growth Allocation Fund
Performance |
| Timeline |
| Artisan Thematic |
| Growth Allocation |
Artisan Thematic and Growth Allocation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Thematic and Growth Allocation
The main advantage of trading using opposite Artisan Thematic and Growth Allocation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Thematic position performs unexpectedly, Growth Allocation 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 Growth Allocation will offset losses from the drop in Growth Allocation's long position.| Artisan Thematic vs. Huber Capital Diversified | Artisan Thematic vs. Western Asset Diversified | Artisan Thematic vs. Jhancock Diversified Macro | Artisan Thematic vs. T Rowe Price |
| Growth Allocation vs. T Rowe Price | Growth Allocation vs. Issachar Fund Class | Growth Allocation vs. Artisan Thematic Fund | Growth Allocation vs. Auer 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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