Correlation Between Artisan Thematic and Ppm High

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

Diversification Opportunities for Artisan Thematic and Ppm High

0.52

Correlation Coefficient

Artisan Thematic  Ppm High

Very weak diversification

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

Pair Corralation between Artisan Thematic and Ppm High

Assuming the 90 days horizon Artisan Thematic Fund is expected to under-perform the Ppm High. In addition to that, Artisan Thematic is 10.62 times more volatile than Ppm High Yield. It trades about -0.02 of its total potential returns per unit of risk. Ppm High Yield is currently generating about 0.04 per unit of volatility. If you would invest  889.00  in Ppm High Yield on September 13, 2024 and sell it today you would earn a total of  4.00  from holding Ppm High Yield or generate 0.45% return on investment over 90 days.

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

Artisan Thematic Fund  vs.  Ppm High Yield

Artisan Thematic

Risk-Adjusted Performance

0 of 100

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.

Ppm High Yield

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ppm High Yield are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Ppm High 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 Ppm High

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

The idea behind Artisan Thematic Fund and Ppm High Yield 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.