Correlation Between Municipal Bond and Artisan Thematic
Can any of the company-specific risk be diversified away by investing in both Municipal Bond 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 Municipal Bond and Artisan Thematic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Municipal Bond Fund and Artisan Thematic Fund, you can compare the effects of market volatilities on Municipal Bond 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 Municipal Bond with a short position of Artisan Thematic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Municipal Bond and Artisan Thematic.
Diversification Opportunities for Municipal Bond and Artisan Thematic
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Municipal and Artisan is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Municipal Bond Fund and Artisan Thematic Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Thematic and Municipal Bond 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 Municipal Bond Fund 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 Municipal Bond i.e., Municipal Bond and Artisan Thematic go up and down completely randomly.
Pair Corralation between Municipal Bond and Artisan Thematic
Assuming the 90 days horizon Municipal Bond Fund is expected to generate 0.18 times more return on investment than Artisan Thematic. However, Municipal Bond Fund is 5.46 times less risky than Artisan Thematic. It trades about 0.43 of its potential returns per unit of risk. Artisan Thematic Fund is currently generating about 0.04 per unit of risk. If you would invest 944.00 in Municipal Bond Fund on September 12, 2024 and sell it today you would earn a total of 15.00 from holding Municipal Bond Fund or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Municipal Bond Fund vs. Artisan Thematic Fund
Performance |
| Timeline |
| Municipal Bond |
| Artisan Thematic |
Municipal Bond and Artisan Thematic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Municipal Bond and Artisan Thematic
The main advantage of trading using opposite Municipal Bond and Artisan Thematic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Municipal Bond 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.| Municipal Bond vs. Touchstone Premium Yield | Municipal Bond vs. T Rowe Price | Municipal Bond vs. Ab Bond Inflation | Municipal Bond vs. Blrc Sgy Mnp |
| Artisan Thematic vs. Huber Capital Diversified | Artisan Thematic vs. Western Asset Diversified | Artisan Thematic vs. Jhancock Diversified Macro | Artisan Thematic vs. T Rowe Price |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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