Correlation Between Artisan Thematic and Steward International
Can any of the company-specific risk be diversified away by investing in both Artisan Thematic and Steward International 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 Steward International 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 Steward International Enhanced, you can compare the effects of market volatilities on Artisan Thematic and Steward International 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 Steward International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Thematic and Steward International.
Diversification Opportunities for Artisan Thematic and Steward International
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Artisan and Steward is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Thematic Fund and Steward International Enhanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steward International 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 Steward International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steward International has no effect on the direction of Artisan Thematic i.e., Artisan Thematic and Steward International go up and down completely randomly.
Pair Corralation between Artisan Thematic and Steward International
Assuming the 90 days horizon Artisan Thematic Fund is expected to generate 1.11 times more return on investment than Steward International. However, Artisan Thematic is 1.11 times more volatile than Steward International Enhanced. It trades about 0.11 of its potential returns per unit of risk. Steward International Enhanced is currently generating about 0.02 per unit of risk. If you would invest 2,191 in Artisan Thematic Fund on September 5, 2024 and sell it today you would earn a total of 326.00 from holding Artisan Thematic Fund or generate 14.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Thematic Fund vs. Steward International Enhanced
Performance |
| Timeline |
| Artisan Thematic |
| Steward International |
Artisan Thematic and Steward International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Thematic and Steward International
The main advantage of trading using opposite Artisan Thematic and Steward International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Thematic position performs unexpectedly, Steward International 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 Steward International will offset losses from the drop in Steward International's long position.| Artisan Thematic vs. Touchstone Premium Yield | Artisan Thematic vs. Legg Mason Partners | Artisan Thematic vs. Blrc Sgy Mnp | Artisan Thematic vs. Federated Pennsylvania Municipal |
| Steward International vs. Morningstar Aggressive Growth | Steward International vs. Ab Global Risk | Steward International vs. Calvert High Yield | Steward International vs. Gmo High Yield |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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