Correlation Between Artisan Thematic and Massmutual Retiresmart
Can any of the company-specific risk be diversified away by investing in both Artisan Thematic and Massmutual Retiresmart 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 Massmutual Retiresmart 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 Massmutual Retiresmart 2025, you can compare the effects of market volatilities on Artisan Thematic and Massmutual Retiresmart 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 Massmutual Retiresmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Thematic and Massmutual Retiresmart.
Diversification Opportunities for Artisan Thematic and Massmutual Retiresmart
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Artisan and Massmutual is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Thematic Fund and Massmutual Retiresmart 2025 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Retiresmart 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 Massmutual Retiresmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Retiresmart has no effect on the direction of Artisan Thematic i.e., Artisan Thematic and Massmutual Retiresmart go up and down completely randomly.
Pair Corralation between Artisan Thematic and Massmutual Retiresmart
Assuming the 90 days horizon Artisan Thematic Fund is expected to generate 2.84 times more return on investment than Massmutual Retiresmart. However, Artisan Thematic is 2.84 times more volatile than Massmutual Retiresmart 2025. It trades about 0.1 of its potential returns per unit of risk. Massmutual Retiresmart 2025 is currently generating about 0.12 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Thematic Fund vs. Massmutual Retiresmart 2025
Performance |
| Timeline |
| Artisan Thematic |
| Massmutual Retiresmart |
Artisan Thematic and Massmutual Retiresmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Thematic and Massmutual Retiresmart
The main advantage of trading using opposite Artisan Thematic and Massmutual Retiresmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Thematic position performs unexpectedly, Massmutual Retiresmart 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 Massmutual Retiresmart will offset losses from the drop in Massmutual Retiresmart'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 |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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