Correlation Between Artisan Thematic and Growth Strategy
Can any of the company-specific risk be diversified away by investing in both Artisan Thematic and Growth Strategy 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 Strategy 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 Strategy Fund, you can compare the effects of market volatilities on Artisan Thematic and Growth Strategy 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 Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Thematic and Growth Strategy.
Diversification Opportunities for Artisan Thematic and Growth Strategy
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Artisan and Growth is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Thematic Fund and Growth Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Strategy 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 Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Strategy has no effect on the direction of Artisan Thematic i.e., Artisan Thematic and Growth Strategy go up and down completely randomly.
Pair Corralation between Artisan Thematic and Growth Strategy
Assuming the 90 days horizon Artisan Thematic Fund is expected to under-perform the Growth Strategy. In addition to that, Artisan Thematic is 4.15 times more volatile than Growth Strategy Fund. It trades about -0.1 of its total potential returns per unit of risk. Growth Strategy Fund is currently generating about 0.05 per unit of volatility. If you would invest 1,197 in Growth Strategy Fund on September 13, 2024 and sell it today you would earn a total of 13.00 from holding Growth Strategy Fund or generate 1.09% 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. Growth Strategy Fund
Performance |
| Timeline |
| Artisan Thematic |
| Growth Strategy |
Artisan Thematic and Growth Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Thematic and Growth Strategy
The main advantage of trading using opposite Artisan Thematic and Growth Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Thematic position performs unexpectedly, Growth Strategy 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 Strategy will offset losses from the drop in Growth Strategy's long position.| Artisan Thematic vs. Ab Global Risk | Artisan Thematic vs. Ppm High Yield | Artisan Thematic vs. Intal High Relative | Artisan Thematic vs. Lgm Risk Managed |
| Growth Strategy vs. Transamerica Emerging Markets | Growth Strategy vs. Ep Emerging Markets | Growth Strategy vs. Extended Market Index | Growth Strategy vs. Pnc Emerging Markets |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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