Correlation Between Artisan Thematic and Nuveen Intermediate

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

Diversification Opportunities for Artisan Thematic and Nuveen Intermediate

-0.26

Correlation Coefficient

Artisan Thematic  Nuveen Intermediate

Very good diversification

The 3 months correlation between Artisan and Nuveen is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Thematic Fund and Nuveen Intermediate Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Intermediate 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 Nuveen Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Intermediate has no effect on the direction of Artisan Thematic i.e., Artisan Thematic and Nuveen Intermediate go up and down completely randomly.

Pair Corralation between Artisan Thematic and Nuveen Intermediate

Assuming the 90 days horizon Artisan Thematic Fund is expected to generate 4.22 times more return on investment than Nuveen Intermediate. However, Artisan Thematic is 4.22 times more volatile than Nuveen Intermediate Duration. It trades about 0.26 of its potential returns per unit of risk. Nuveen Intermediate Duration is currently generating about -0.01 per unit of risk. If you would invest  2,215  in Artisan Thematic Fund on September 10, 2024 and sell it today you would earn a total of  361.00  from holding Artisan Thematic Fund or generate 16.3% return on investment over 90 days.

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

Artisan Thematic Fund  vs.  Nuveen Intermediate Duration

Artisan Thematic

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Thematic Fund are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Artisan Thematic showed solid returns over the last few months and may actually be approaching a breakup point.

Nuveen Intermediate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nuveen Intermediate Duration has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental drivers, Nuveen Intermediate 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 Nuveen Intermediate

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

The idea behind Artisan Thematic Fund and Nuveen Intermediate Duration 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.