Correlation Between Artisan Thematic and Century Small
Can any of the company-specific risk be diversified away by investing in both Artisan Thematic and Century Small 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 Century Small 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 Century Small Cap, you can compare the effects of market volatilities on Artisan Thematic and Century Small 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 Century Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Thematic and Century Small.
Diversification Opportunities for Artisan Thematic and Century Small
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Artisan and Century is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Thematic Fund and Century Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Century Small Cap 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 Century Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Century Small Cap has no effect on the direction of Artisan Thematic i.e., Artisan Thematic and Century Small go up and down completely randomly.
Pair Corralation between Artisan Thematic and Century Small
Assuming the 90 days horizon Artisan Thematic Fund is expected to under-perform the Century Small. In addition to that, Artisan Thematic is 1.52 times more volatile than Century Small Cap. It trades about -0.01 of its total potential returns per unit of risk. Century Small Cap is currently generating about 0.17 per unit of volatility. If you would invest 3,823 in Century Small Cap on September 12, 2024 and sell it today you would earn a total of 493.00 from holding Century Small Cap or generate 12.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.44% |
Values | Daily Returns |
Artisan Thematic Fund vs. Century Small Cap
Performance |
Timeline |
Artisan Thematic |
Century Small Cap |
Artisan Thematic and Century Small Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Artisan Thematic and Century Small
The main advantage of trading using opposite Artisan Thematic and Century Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Thematic position performs unexpectedly, Century Small 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 Century Small will offset losses from the drop in Century Small's long position.Artisan Thematic vs. Huber Capital Diversified | Artisan Thematic vs. Western Asset Diversified | Artisan Thematic vs. Jhancock Diversified Macro | Artisan Thematic vs. T Rowe Price |
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Check out your portfolio center.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.
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