Correlation Between Artisan Thematic and Tiaa-cref Small-cap
Can any of the company-specific risk be diversified away by investing in both Artisan Thematic and Tiaa-cref Small-cap 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 Tiaa-cref Small-cap 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 Tiaa Cref Small Cap Blend, you can compare the effects of market volatilities on Artisan Thematic and Tiaa-cref Small-cap 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 Tiaa-cref Small-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Thematic and Tiaa-cref Small-cap.
Diversification Opportunities for Artisan Thematic and Tiaa-cref Small-cap
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Artisan and Tiaa-cref is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Thematic Fund and Tiaa Cref Small Cap Blend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa-cref Small-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 Tiaa-cref Small-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa-cref Small-cap has no effect on the direction of Artisan Thematic i.e., Artisan Thematic and Tiaa-cref Small-cap go up and down completely randomly.
Pair Corralation between Artisan Thematic and Tiaa-cref Small-cap
Assuming the 90 days horizon Artisan Thematic is expected to generate 1.95 times less return on investment than Tiaa-cref Small-cap. But when comparing it to its historical volatility, Artisan Thematic Fund is 1.56 times less risky than Tiaa-cref Small-cap. It trades about 0.2 of its potential returns per unit of risk. Tiaa Cref Small Cap Blend is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,533 in Tiaa Cref Small Cap Blend on August 28, 2024 and sell it today you would earn a total of 227.00 from holding Tiaa Cref Small Cap Blend or generate 8.96% 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. Tiaa Cref Small Cap Blend
Performance |
| Timeline |
| Artisan Thematic |
| Tiaa-cref Small-cap |
Artisan Thematic and Tiaa-cref Small-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Thematic and Tiaa-cref Small-cap
The main advantage of trading using opposite Artisan Thematic and Tiaa-cref Small-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Thematic position performs unexpectedly, Tiaa-cref Small-cap 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 Tiaa-cref Small-cap will offset losses from the drop in Tiaa-cref Small-cap's long position.| Artisan Thematic vs. John Hancock Financial | Artisan Thematic vs. Vanguard Financials Index | Artisan Thematic vs. Gabelli Global Financial | Artisan Thematic vs. Prudential Jennison Financial |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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