Correlation Between Artisan Small and Thornburg Investment
Can any of the company-specific risk be diversified away by investing in both Artisan Small and Thornburg Investment 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 Small and Thornburg Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Small Cap and Thornburg Investment Trust, you can compare the effects of market volatilities on Artisan Small and Thornburg Investment 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 Small with a short position of Thornburg Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Small and Thornburg Investment.
Diversification Opportunities for Artisan Small and Thornburg Investment
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Artisan and Thornburg is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Small Cap and Thornburg Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thornburg Investment and Artisan Small 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 Small Cap are associated (or correlated) with Thornburg Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thornburg Investment has no effect on the direction of Artisan Small i.e., Artisan Small and Thornburg Investment go up and down completely randomly.
Pair Corralation between Artisan Small and Thornburg Investment
Assuming the 90 days horizon Artisan Small Cap is expected to generate 1.66 times more return on investment than Thornburg Investment. However, Artisan Small is 1.66 times more volatile than Thornburg Investment Trust. It trades about 0.18 of its potential returns per unit of risk. Thornburg Investment Trust is currently generating about -0.08 per unit of risk. If you would invest 3,448 in Artisan Small Cap on September 12, 2024 and sell it today you would earn a total of 467.00 from holding Artisan Small Cap or generate 13.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Small Cap vs. Thornburg Investment Trust
Performance |
| Timeline |
| Artisan Small Cap |
| Thornburg Investment |
Artisan Small and Thornburg Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Small and Thornburg Investment
The main advantage of trading using opposite Artisan Small and Thornburg Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Small position performs unexpectedly, Thornburg Investment 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 Thornburg Investment will offset losses from the drop in Thornburg Investment's long position.| Artisan Small vs. Third Avenue Real | Artisan Small vs. Aegis Value Fund | Artisan Small vs. Litman Gregory Masters | Artisan Small vs. Marsico Growth Fund |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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