Correlation Between Columbia Amt and Artisan Thematic

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

By analyzing existing cross correlation between Columbia Amt Free California and Artisan Thematic Fund, you can compare the effects of market volatilities on Columbia Amt and Artisan Thematic 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 Columbia Amt with a short position of Artisan Thematic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Amt and Artisan Thematic.

Diversification Opportunities for Columbia Amt and Artisan Thematic

-0.1

Correlation Coefficient

Columbia Amt  Artisan Thematic

Good diversification

The 3 months correlation between Columbia and Artisan is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Amt Free California and Artisan Thematic Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Thematic and Columbia Amt 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 Columbia Amt Free California are associated (or correlated) with Artisan Thematic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Thematic has no effect on the direction of Columbia Amt i.e., Columbia Amt and Artisan Thematic go up and down completely randomly.

Pair Corralation between Columbia Amt and Artisan Thematic

Assuming the 90 days horizon Columbia Amt is expected to generate 24.26 times less return on investment than Artisan Thematic. But when comparing it to its historical volatility, Columbia Amt Free California is 5.33 times less risky than Artisan Thematic. It trades about 0.04 of its potential returns per unit of risk. Artisan Thematic Fund is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  2,282  in Artisan Thematic Fund on September 12, 2024 and sell it today you would earn a total of  235.00  from holding Artisan Thematic Fund or generate 10.3% return on investment over 90 days.

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

Columbia Amt Free California  vs.  Artisan Thematic Fund

Columbia Amt Free

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Columbia Amt Free California are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong primary indicators, Columbia Amt is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Artisan Thematic

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Thematic Fund are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Artisan Thematic may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Columbia Amt and Artisan Thematic

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

The idea behind Columbia Amt Free California and Artisan Thematic Fund 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.