Correlation Between Artisan Thematic and Voya Securitized

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

Diversification Opportunities for Artisan Thematic and Voya Securitized

0.89

Correlation Coefficient

Artisan Thematic  Voya Securitized

Very poor diversification

The 3 months correlation between Artisan and Voya is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Thematic Fund and Voya Securitized Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Securitized Credit 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 Voya Securitized. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Securitized Credit has no effect on the direction of Artisan Thematic i.e., Artisan Thematic and Voya Securitized go up and down completely randomly.

Pair Corralation between Artisan Thematic and Voya Securitized

If you would invest  2,214  in Artisan Thematic Fund on September 5, 2024 and sell it today you would earn a total of  303.00  from holding Artisan Thematic Fund or generate 13.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	1.59%
Values	Daily Returns

Artisan Thematic Fund  vs.  Voya Securitized Credit

Artisan Thematic

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Thematic Fund are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Artisan Thematic showed solid returns over the last few months and may actually be approaching a breakup point.

Voya Securitized Credit

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Voya Securitized Credit has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Voya Securitized 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 Voya Securitized

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

The idea behind Artisan Thematic Fund and Voya Securitized Credit 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.