Correlation Between Artisan Thematic and Wasatch Small
Can any of the company-specific risk be diversified away by investing in both Artisan Thematic and Wasatch Small 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 Wasatch Small 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 Wasatch Small Cap, you can compare the effects of market volatilities on Artisan Thematic and Wasatch Small 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 Wasatch Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Thematic and Wasatch Small.
Diversification Opportunities for Artisan Thematic and Wasatch Small
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Artisan and Wasatch is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Thematic Fund and Wasatch Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasatch 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 Wasatch Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasatch Small Cap has no effect on the direction of Artisan Thematic i.e., Artisan Thematic and Wasatch Small go up and down completely randomly.
Pair Corralation between Artisan Thematic and Wasatch Small
Assuming the 90 days horizon Artisan Thematic is expected to generate 1.98 times less return on investment than Wasatch Small. But when comparing it to its historical volatility, Artisan Thematic Fund is 1.53 times less risky than Wasatch Small. It trades about 0.15 of its potential returns per unit of risk. Wasatch Small Cap is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,147 in Wasatch Small Cap on August 24, 2024 and sell it today you would earn a total of 84.00 from holding Wasatch Small Cap or generate 7.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Artisan Thematic Fund vs. Wasatch Small Cap
Performance |
| Timeline |
| Artisan Thematic |
| Wasatch Small Cap |
Artisan Thematic and Wasatch Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Thematic and Wasatch Small
The main advantage of trading using opposite Artisan Thematic and Wasatch Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Thematic position performs unexpectedly, Wasatch Small 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 Wasatch Small will offset losses from the drop in Wasatch Small's long position.| Artisan Thematic vs. HUMANA INC | Artisan Thematic vs. Aquagold International | Artisan Thematic vs. Barloworld Ltd ADR | Artisan Thematic vs. Morningstar Unconstrained Allocation |
| Wasatch Small vs. Europac Gold Fund | Wasatch Small vs. Great West Goldman Sachs | Wasatch Small vs. Wells Fargo Advantage | Wasatch Small vs. Sprott Gold Equity |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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