Correlation Between Artisan Thematic and Artisan Value
Can any of the company-specific risk be diversified away by investing in both Artisan Thematic and Artisan Value 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 Artisan Thematic and Artisan Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Thematic Fund and Artisan Value Income, you can compare the effects of market volatilities on Artisan Thematic and Artisan Value 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 Artisan Thematic with a short position of Artisan Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Thematic and Artisan Value.
Diversification Opportunities for Artisan Thematic and Artisan Value
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Artisan and Artisan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Thematic Fund and Artisan Value Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Value Income and Artisan Thematic 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 Artisan Thematic Fund are associated (or correlated) with Artisan Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Value Income has no effect on the direction of Artisan Thematic i.e., Artisan Thematic and Artisan Value go up and down completely randomly.
Pair Corralation between Artisan Thematic and Artisan Value
Assuming the 90 days horizon Artisan Thematic Fund is expected to generate 1.3 times more return on investment than Artisan Value. However, Artisan Thematic is 1.3 times more volatile than Artisan Value Income. It trades about 0.34 of its potential returns per unit of risk. Artisan Value Income is currently generating about 0.21 per unit of risk. If you would invest 2,140 in Artisan Thematic Fund on April 25, 2025 and sell it today you would earn a total of 407.00 from holding Artisan Thematic Fund or generate 19.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Thematic Fund vs. Artisan Value Income
Performance |
| Timeline |
| Artisan Thematic |
| Artisan Value Income |
Artisan Thematic and Artisan Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Thematic and Artisan Value
The main advantage of trading using opposite Artisan Thematic and Artisan Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Thematic position performs unexpectedly, Artisan Value 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 Value will offset losses from the drop in Artisan Value's long position.The idea behind Artisan Thematic Fund and Artisan Value Income pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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