Correlation Between Wilmington Funds and Artisan Thematic

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

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

Diversification Opportunities for Wilmington Funds and Artisan Thematic

0.16

Correlation Coefficient

Wilmington Funds  Artisan Thematic

Average diversification

The 3 months correlation between Wilmington and Artisan is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Wilmington Funds and Artisan Thematic Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Thematic and Wilmington Funds 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 Wilmington Funds 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 Wilmington Funds i.e., Wilmington Funds and Artisan Thematic go up and down completely randomly.

Pair Corralation between Wilmington Funds and Artisan Thematic

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	Insignificant
Accuracy	100.0%
Values	Daily Returns

Wilmington Funds   vs.  Artisan Thematic Fund

Wilmington Funds

Risk-Adjusted Performance

0 of 100

Very Weak

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

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.

Pair Trading with Wilmington Funds and Artisan Thematic

The main advantage of trading using opposite Wilmington Funds and Artisan Thematic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilmington Funds 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 Wilmington Funds 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..