Correlation Between Pear Tree and Artisan Thematic
Can any of the company-specific risk be diversified away by investing in both Pear Tree 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 Pear Tree and Artisan Thematic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pear Tree Polaris and Artisan Thematic, you can compare the effects of market volatilities on Pear Tree 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 Pear Tree with a short position of Artisan Thematic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pear Tree and Artisan Thematic.
Diversification Opportunities for Pear Tree and Artisan Thematic
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pear and Artisan is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Pear Tree Polaris and Artisan Thematic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Thematic and Pear Tree 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 Pear Tree Polaris 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 Pear Tree i.e., Pear Tree and Artisan Thematic go up and down completely randomly.
Pair Corralation between Pear Tree and Artisan Thematic
Assuming the 90 days horizon Pear Tree Polaris is expected to under-perform the Artisan Thematic. But the mutual fund apears to be less risky and, when comparing its historical volatility, Pear Tree Polaris is 1.17 times less risky than Artisan Thematic. The mutual fund trades about -0.16 of its potential returns per unit of risk. The Artisan Thematic is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 2,314 in Artisan Thematic on September 3, 2024 and sell it today you would earn a total of 191.00 from holding Artisan Thematic or generate 8.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pear Tree Polaris vs. Artisan Thematic
Performance |
| Timeline |
| Pear Tree Polaris |
| Artisan Thematic |
Pear Tree and Artisan Thematic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pear Tree and Artisan Thematic
The main advantage of trading using opposite Pear Tree and Artisan Thematic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pear Tree 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.| Pear Tree vs. Pear Tree Polaris | Pear Tree vs. Pear Tree Polaris | Pear Tree vs. Artisan International Value | Pear Tree vs. Johcm International Select |
| Artisan Thematic vs. Artisan High Income | Artisan Thematic vs. Artisan Developing World | Artisan Thematic vs. Artisan Global Opportunities | Artisan Thematic vs. Artisan International Small |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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