Correlation Between Aqr Small and Artisan Thematic
Can any of the company-specific risk be diversified away by investing in both Aqr Small 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 Aqr Small and Artisan Thematic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Small Cap and Artisan Thematic Fund, you can compare the effects of market volatilities on Aqr Small 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 Aqr Small with a short position of Artisan Thematic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Small and Artisan Thematic.
Diversification Opportunities for Aqr Small and Artisan Thematic
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aqr and Artisan is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Small Cap and Artisan Thematic Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Thematic and Aqr 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 Aqr Small Cap 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 Aqr Small i.e., Aqr Small and Artisan Thematic go up and down completely randomly.
Pair Corralation between Aqr Small and Artisan Thematic
Assuming the 90 days horizon Aqr Small Cap is expected to generate 1.37 times more return on investment than Artisan Thematic. However, Aqr Small is 1.37 times more volatile than Artisan Thematic Fund. It trades about 0.1 of its potential returns per unit of risk. Artisan Thematic Fund is currently generating about 0.09 per unit of risk. If you would invest 1,732 in Aqr Small Cap on September 12, 2024 and sell it today you would earn a total of 321.00 from holding Aqr Small Cap or generate 18.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Small Cap vs. Artisan Thematic Fund
Performance |
| Timeline |
| Aqr Small Cap |
| Artisan Thematic |
Aqr Small and Artisan Thematic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Small and Artisan Thematic
The main advantage of trading using opposite Aqr Small and Artisan Thematic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Small 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.| Aqr Small vs. Sp Midcap Index | Aqr Small vs. Sp 500 Index | Aqr Small vs. Nasdaq 100 Index Fund | Aqr Small vs. Deutsche Sp 500 |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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