Correlation Between Artisan Thematic and Growth Fund

Can any of the company-specific risk be diversified away by investing in both Artisan Thematic and Growth Fund 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 Growth Fund 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 Growth Fund Of, you can compare the effects of market volatilities on Artisan Thematic and Growth Fund 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 Growth Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Thematic and Growth Fund.

Diversification Opportunities for Artisan Thematic and Growth Fund

0.52

Correlation Coefficient

Artisan Thematic  Growth Fund

Very weak diversification

The 3 months correlation between Artisan and Growth is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Thematic Fund and Growth Fund Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Fund 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 Growth Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Fund has no effect on the direction of Artisan Thematic i.e., Artisan Thematic and Growth Fund go up and down completely randomly.

Pair Corralation between Artisan Thematic and Growth Fund

Assuming the 90 days horizon Artisan Thematic is expected to generate 1.47 times less return on investment than Growth Fund. In addition to that, Artisan Thematic is 1.02 times more volatile than Growth Fund Of. It trades about 0.01 of its total potential returns per unit of risk. Growth Fund Of is currently generating about 0.01 per unit of volatility. If you would invest  6,415  in Growth Fund Of on September 29, 2024 and sell it today you would earn a total of  77.00  from holding Growth Fund Of or generate 1.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Artisan Thematic Fund  vs.  Growth Fund Of

Artisan Thematic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Artisan Thematic Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Artisan Thematic is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Growth Fund

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Growth Fund Of has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Growth Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Artisan Thematic and Growth Fund

The main advantage of trading using opposite Artisan Thematic and Growth Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Thematic position performs unexpectedly, Growth Fund 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 Growth Fund will offset losses from the drop in Growth Fund's long position.

The idea behind Artisan Thematic Fund and Growth Fund Of 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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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.