Correlation Between Artisan Thematic and Optimum Large
Can any of the company-specific risk be diversified away by investing in both Artisan Thematic and Optimum Large 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 Optimum Large 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 Optimum Large Cap, you can compare the effects of market volatilities on Artisan Thematic and Optimum Large 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 Optimum Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Thematic and Optimum Large.
Diversification Opportunities for Artisan Thematic and Optimum Large
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Artisan and Optimum is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Thematic Fund and Optimum Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Optimum Large Cap 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 Optimum Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Optimum Large Cap has no effect on the direction of Artisan Thematic i.e., Artisan Thematic and Optimum Large go up and down completely randomly.
Pair Corralation between Artisan Thematic and Optimum Large
Assuming the 90 days horizon Artisan Thematic Fund is expected to generate 0.91 times more return on investment than Optimum Large. However, Artisan Thematic Fund is 1.09 times less risky than Optimum Large. It trades about 0.16 of its potential returns per unit of risk. Optimum Large Cap is currently generating about 0.05 per unit of risk. If you would invest 1,696 in Artisan Thematic Fund on September 1, 2024 and sell it today you would earn a total of 802.00 from holding Artisan Thematic Fund or generate 47.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.63% |
| Values | Daily Returns |
Artisan Thematic Fund vs. Optimum Large Cap
Performance |
| Timeline |
| Artisan Thematic |
| Optimum Large Cap |
Artisan Thematic and Optimum Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Thematic and Optimum Large
The main advantage of trading using opposite Artisan Thematic and Optimum Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Thematic position performs unexpectedly, Optimum Large 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 Optimum Large will offset losses from the drop in Optimum Large's long position.| Artisan Thematic vs. Rbc Funds Trust | Artisan Thematic vs. Nasdaq 100 Index Fund | Artisan Thematic vs. Victory Incore Fund | Artisan Thematic vs. Shelton Funds |
| Optimum Large vs. Optimum Small Mid Cap | Optimum Large vs. Optimum Small Mid Cap | Optimum Large vs. Ivy Apollo Multi Asset | Optimum Large vs. Optimum Fixed Income |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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