Correlation Between Artisan Thematic and Aquagold International

Can any of the company-specific risk be diversified away by investing in both Artisan Thematic and Aquagold International 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 Aquagold International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Artisan Thematic and Aquagold International, you can compare the effects of market volatilities on Artisan Thematic and Aquagold International 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 Aquagold International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Thematic and Aquagold International.

Diversification Opportunities for Artisan Thematic and Aquagold International

0.52

Correlation Coefficient

Artisan Thematic  Aquagold International

Very weak diversification

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

Pair Corralation between Artisan Thematic and Aquagold International

Assuming the 90 days horizon Artisan Thematic is expected to generate 0.22 times more return on investment than Aquagold International. However, Artisan Thematic is 4.46 times less risky than Aquagold International. It trades about -0.03 of its potential returns per unit of risk. Aquagold International is currently generating about -0.12 per unit of risk. If you would invest  2,166  in Artisan Thematic on December 30, 2024 and sell it today you would lose (59.00) from holding Artisan Thematic or give up 2.72% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.38%
Values	Daily Returns

Artisan Thematic  vs.  Aquagold International

Artisan Thematic

Risk-Adjusted Performance

Very Weak

Over the last 90 days Artisan Thematic 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.

Aquagold International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aquagold International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Artisan Thematic and Aquagold International

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

The idea behind Artisan Thematic and Aquagold International 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.