Correlation Between Artisan Thematic and Aperture Discover

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

Diversification Opportunities for Artisan Thematic and Aperture Discover

0.66

Correlation Coefficient

Artisan Thematic  Aperture Discover

Poor diversification

The 3 months correlation between Artisan and Aperture is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Thematic Fund and Aperture Discover Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aperture Discover Equity 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 Aperture Discover. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aperture Discover Equity has no effect on the direction of Artisan Thematic i.e., Artisan Thematic and Aperture Discover go up and down completely randomly.

Pair Corralation between Artisan Thematic and Aperture Discover

If you would invest  2,266  in Artisan Thematic Fund on August 16, 2024 and sell it today you would earn a total of  203.00  from holding Artisan Thematic Fund or generate 8.96% return on investment over 90 days.

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

Artisan Thematic Fund  vs.  Aperture Discover Equity

Artisan Thematic

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Thematic Fund are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Artisan Thematic may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Aperture Discover Equity

Risk-Adjusted Performance

0 of 100

Very Weak

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

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

The idea behind Artisan Thematic Fund and Aperture Discover Equity 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.