Correlation Between Artisan Thematic and Gold

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

Diversification Opportunities for Artisan Thematic and Gold

-0.18

Correlation Coefficient

Artisan Thematic  Gold

Good diversification

The 3 months correlation between Artisan and Gold is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Thematic Fund and Gold And Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold And Precious 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 Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold And Precious has no effect on the direction of Artisan Thematic i.e., Artisan Thematic and Gold go up and down completely randomly.

Pair Corralation between Artisan Thematic and Gold

Assuming the 90 days horizon Artisan Thematic Fund is expected to under-perform the Gold. In addition to that, Artisan Thematic is 1.03 times more volatile than Gold And Precious. It trades about -0.02 of its total potential returns per unit of risk. Gold And Precious is currently generating about 0.01 per unit of volatility. If you would invest  1,314  in Gold And Precious on September 13, 2024 and sell it today you would lose (3.00) from holding Gold And Precious or give up 0.23% of portfolio value over 90 days.

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

Artisan Thematic Fund  vs.  Gold And Precious

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.

Gold And Precious

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gold And Precious has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Gold 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 Gold

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

The idea behind Artisan Thematic Fund and Gold And Precious 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..