Correlation Between Blackrock and Artisan Thematic

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

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

Diversification Opportunities for Blackrock and Artisan Thematic

0.76

Correlation Coefficient

Blackrock  Artisan Thematic

Poor diversification

The 3 months correlation between Blackrock and Artisan is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Sm Cap and Artisan Thematic Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Thematic and Blackrock 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 Blackrock Sm Cap 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 Blackrock i.e., Blackrock and Artisan Thematic go up and down completely randomly.

Pair Corralation between Blackrock and Artisan Thematic

Assuming the 90 days horizon Blackrock Sm Cap is expected to generate 1.32 times more return on investment than Artisan Thematic. However, Blackrock is 1.32 times more volatile than Artisan Thematic Fund. It trades about 0.14 of its potential returns per unit of risk. Artisan Thematic Fund is currently generating about 0.16 per unit of risk. If you would invest  2,422  in Blackrock Sm Cap on August 15, 2024 and sell it today you would earn a total of  297.00  from holding Blackrock Sm Cap or generate 12.26% return on investment over 90 days.

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

Blackrock Sm Cap  vs.  Artisan Thematic Fund

Blackrock Sm Cap

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock Sm Cap are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward-looking signals, Blackrock may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Artisan Thematic

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Thematic Fund are ranked lower than 12 (%) 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.

Pair Trading with Blackrock and Artisan Thematic

The main advantage of trading using opposite Blackrock and Artisan Thematic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock 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 Blackrock Sm Cap 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.