Correlation Between Growth Fund and Artisan Focus

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

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

Diversification Opportunities for Growth Fund and Artisan Focus

0.98

Correlation Coefficient

Growth Fund  Artisan Focus

Almost no diversification

The 3 months correlation between Growth and Artisan is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Artisan Focus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Focus and Growth Fund 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 Growth Fund Of are associated (or correlated) with Artisan Focus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Focus has no effect on the direction of Growth Fund i.e., Growth Fund and Artisan Focus go up and down completely randomly.

Pair Corralation between Growth Fund and Artisan Focus

Assuming the 90 days horizon Growth Fund is expected to generate 1.16 times less return on investment than Artisan Focus. In addition to that, Growth Fund is 1.09 times more volatile than Artisan Focus. It trades about 0.23 of its total potential returns per unit of risk. Artisan Focus is currently generating about 0.29 per unit of volatility. If you would invest  2,237  in Artisan Focus on May 5, 2025 and sell it today you would earn a total of  345.00  from holding Artisan Focus or generate 15.42% return on investment over 90 days.

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

Growth Fund Of  vs.  Artisan Focus

Growth Fund

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Growth Fund Of are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Growth Fund may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Artisan Focus

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Focus are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Artisan Focus showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Growth Fund and Artisan Focus

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

The idea behind Growth Fund Of and Artisan Focus 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.

Check out your portfolio center.

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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.