Correlation Between Artisan Thematic and Deutsche Global

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

Diversification Opportunities for Artisan Thematic and Deutsche Global

0.62

Correlation Coefficient

Artisan Thematic  Deutsche Global

Poor diversification

The 3 months correlation between Artisan and Deutsche is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Thematic Fund and Deutsche Global Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Global 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 Deutsche Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Global Income has no effect on the direction of Artisan Thematic i.e., Artisan Thematic and Deutsche Global go up and down completely randomly.

Pair Corralation between Artisan Thematic and Deutsche Global

Assuming the 90 days horizon Artisan Thematic Fund is expected to generate 1.35 times more return on investment than Deutsche Global. However, Artisan Thematic is 1.35 times more volatile than Deutsche Global Income. It trades about 0.02 of its potential returns per unit of risk. Deutsche Global Income is currently generating about -0.04 per unit of risk. If you would invest  2,188  in Artisan Thematic Fund on September 28, 2024 and sell it today you would earn a total of  49.00  from holding Artisan Thematic Fund or generate 2.24% return on investment over 90 days.

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

Artisan Thematic Fund  vs.  Deutsche Global Income

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.

Deutsche Global Income

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Deutsche Global Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Artisan Thematic and Deutsche Global

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

The idea behind Artisan Thematic Fund and Deutsche Global 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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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.