Correlation Between Armada Hflr and Putnam Multi
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Putnam Multi 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 Armada Hflr and Putnam Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Armada Hflr Pr and Putnam Multi Cap Growth, you can compare the effects of market volatilities on Armada Hflr and Putnam Multi 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 Armada Hflr with a short position of Putnam Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Putnam Multi.
Diversification Opportunities for Armada Hflr and Putnam Multi
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Armada and Putnam is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Putnam Multi Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Multi Cap and Armada Hflr 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 Armada Hflr Pr are associated (or correlated) with Putnam Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Multi Cap has no effect on the direction of Armada Hflr i.e., Armada Hflr and Putnam Multi go up and down completely randomly.
Pair Corralation between Armada Hflr and Putnam Multi
Considering the 90-day investment horizon Armada Hflr Pr is expected to generate 0.79 times more return on investment than Putnam Multi. However, Armada Hflr Pr is 1.27 times less risky than Putnam Multi. It trades about -0.15 of its potential returns per unit of risk. Putnam Multi Cap Growth is currently generating about -0.12 per unit of risk. If you would invest 1,106 in Armada Hflr Pr on September 23, 2024 and sell it today you would lose (81.00) from holding Armada Hflr Pr or give up 7.32% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Armada Hflr Pr vs. Putnam Multi Cap Growth
Performance |
Timeline |
Armada Hflr Pr |
Putnam Multi Cap |
Armada Hflr and Putnam Multi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and Putnam Multi
The main advantage of trading using opposite Armada Hflr and Putnam Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Putnam Multi 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 Putnam Multi will offset losses from the drop in Putnam Multi's long position.Armada Hflr vs. Modiv Inc | Armada Hflr vs. Precinct Properties New | Armada Hflr vs. Global Net Lease | Armada Hflr vs. NexPoint Diversified Real |
Putnam Multi vs. Putnam Equity Income | Putnam Multi vs. Putnam Tax Exempt | Putnam Multi vs. Putnam Floating Rate | Putnam Multi vs. Putnam High Yield |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |