Correlation Between Artisan Thematic and Value Line
Can any of the company-specific risk be diversified away by investing in both Artisan Thematic and Value Line 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 Value Line 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 Value Line Larger, you can compare the effects of market volatilities on Artisan Thematic and Value Line 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 Value Line. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Thematic and Value Line.
Diversification Opportunities for Artisan Thematic and Value Line
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Artisan and Value is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Thematic Fund and Value Line Larger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Line Larger 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 Value Line. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Line Larger has no effect on the direction of Artisan Thematic i.e., Artisan Thematic and Value Line go up and down completely randomly.
Pair Corralation between Artisan Thematic and Value Line
Assuming the 90 days horizon Artisan Thematic is expected to generate 1.65 times less return on investment than Value Line. But when comparing it to its historical volatility, Artisan Thematic Fund is 1.08 times less risky than Value Line. It trades about 0.04 of its potential returns per unit of risk. Value Line Larger is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,210 in Value Line Larger on October 22, 2024 and sell it today you would earn a total of 675.00 from holding Value Line Larger or generate 21.03% 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. Value Line Larger
Performance |
| Timeline |
| Artisan Thematic |
| Value Line Larger |
Artisan Thematic and Value Line Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Thematic and Value Line
The main advantage of trading using opposite Artisan Thematic and Value Line positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Thematic position performs unexpectedly, Value Line 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 Value Line will offset losses from the drop in Value Line's long position.| Artisan Thematic vs. John Hancock Financial | Artisan Thematic vs. Mesirow Financial Small | Artisan Thematic vs. 1919 Financial Services | Artisan Thematic vs. Angel Oak Financial |
| Value Line vs. Smallcap World Fund | Value Line vs. Us Vector Equity | Value Line vs. Gmo Global Equity | Value Line vs. Enhanced 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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