Correlation Between Growth Opportunities and Artisan Thematic
Can any of the company-specific risk be diversified away by investing in both Growth Opportunities 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 Growth Opportunities and Artisan Thematic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Opportunities Fund and Artisan Thematic Fund, you can compare the effects of market volatilities on Growth Opportunities 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 Growth Opportunities with a short position of Artisan Thematic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Opportunities and Artisan Thematic.
Diversification Opportunities for Growth Opportunities and Artisan Thematic
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GROWTH and Artisan is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Growth Opportunities 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 Growth Opportunities 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 Growth Opportunities 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 Growth Opportunities i.e., Growth Opportunities and Artisan Thematic go up and down completely randomly.
Pair Corralation between Growth Opportunities and Artisan Thematic
Assuming the 90 days horizon Growth Opportunities is expected to generate 1.05 times less return on investment than Artisan Thematic. But when comparing it to its historical volatility, Growth Opportunities Fund is 1.02 times less risky than Artisan Thematic. It trades about 0.16 of its potential returns per unit of risk. Artisan Thematic Fund is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,401 in Artisan Thematic Fund on August 31, 2024 and sell it today you would earn a total of 97.00 from holding Artisan Thematic Fund or generate 4.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Opportunities Fund vs. Artisan Thematic Fund
Performance |
| Timeline |
| Growth Opportunities |
| Artisan Thematic |
Growth Opportunities and Artisan Thematic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Opportunities and Artisan Thematic
The main advantage of trading using opposite Growth Opportunities and Artisan Thematic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Opportunities 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.| Growth Opportunities vs. Europacific Growth Fund | Growth Opportunities vs. Washington Mutual Investors | Growth Opportunities vs. Capital World Growth | Growth Opportunities vs. HUMANA INC |
| Artisan Thematic vs. Artisan High Income | Artisan Thematic vs. Pace High Yield | Artisan Thematic vs. Alpine High Yield | Artisan Thematic vs. Blackrock High Yield |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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