Correlation Between Prudential High and Artisan Thematic
Can any of the company-specific risk be diversified away by investing in both Prudential High and Artisan Thematic 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 Prudential High and Artisan Thematic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prudential High Yield and Artisan Thematic Fund, you can compare the effects of market volatilities on Prudential High and Artisan Thematic 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 Prudential High with a short position of Artisan Thematic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential High and Artisan Thematic.
Diversification Opportunities for Prudential High and Artisan Thematic
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Prudential and Artisan is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Prudential High Yield and Artisan Thematic Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Thematic and Prudential High 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 Prudential High Yield are associated (or correlated) with Artisan Thematic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Thematic has no effect on the direction of Prudential High i.e., Prudential High and Artisan Thematic go up and down completely randomly.
Pair Corralation between Prudential High and Artisan Thematic
Assuming the 90 days horizon Prudential High is expected to generate 20.36 times less return on investment than Artisan Thematic. But when comparing it to its historical volatility, Prudential High Yield is 6.66 times less risky than Artisan Thematic. It trades about 0.14 of its potential returns per unit of risk. Artisan Thematic Fund is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 2,330 in Artisan Thematic Fund on September 4, 2024 and sell it today you would earn a total of 193.00 from holding Artisan Thematic Fund or generate 8.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Prudential High Yield vs. Artisan Thematic Fund
Performance |
| Timeline |
| Prudential High Yield |
| Artisan Thematic |
Prudential High and Artisan Thematic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential High and Artisan Thematic
The main advantage of trading using opposite Prudential High and Artisan Thematic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential High position performs unexpectedly, Artisan Thematic 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 Artisan Thematic will offset losses from the drop in Artisan Thematic's long position.| Prudential High vs. Prudential Total Return | Prudential High vs. Metropolitan West Total | Prudential High vs. John Hancock Disciplined | Prudential High vs. Europacific 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |