Correlation Between Artisan Thematic and Monthly Rebalance

Can any of the company-specific risk be diversified away by investing in both Artisan Thematic and Monthly Rebalance 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 Monthly Rebalance 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 Monthly Rebalance Nasdaq 100, you can compare the effects of market volatilities on Artisan Thematic and Monthly Rebalance 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 Monthly Rebalance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Thematic and Monthly Rebalance.

Diversification Opportunities for Artisan Thematic and Monthly Rebalance

0.89

Correlation Coefficient

Artisan Thematic  Monthly Rebalance

Very poor diversification

The 3 months correlation between Artisan and Monthly is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Thematic Fund and Monthly Rebalance Nasdaq 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monthly Rebalance 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 Monthly Rebalance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monthly Rebalance has no effect on the direction of Artisan Thematic i.e., Artisan Thematic and Monthly Rebalance go up and down completely randomly.

Pair Corralation between Artisan Thematic and Monthly Rebalance

Assuming the 90 days horizon Artisan Thematic Fund is expected to generate 0.49 times more return on investment than Monthly Rebalance. However, Artisan Thematic Fund is 2.04 times less risky than Monthly Rebalance. It trades about -0.02 of its potential returns per unit of risk. Monthly Rebalance Nasdaq 100 is currently generating about -0.1 per unit of risk. If you would invest  2,184  in Artisan Thematic Fund on December 30, 2024 and sell it today you would lose (59.00) from holding Artisan Thematic Fund or give up 2.7% of portfolio value over 90 days.

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

Artisan Thematic Fund  vs.  Monthly Rebalance Nasdaq 100

Artisan Thematic

Risk-Adjusted Performance

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.

Monthly Rebalance

Risk-Adjusted Performance

Very Weak

Over the last 90 days Monthly Rebalance Nasdaq 100 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 technical indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Artisan Thematic and Monthly Rebalance

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

The idea behind Artisan Thematic Fund and Monthly Rebalance Nasdaq 100 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.