Correlation Between ANT and Putnam Multi

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

By analyzing existing cross correlation between ANT and Putnam Multi Cap Value, you can compare the effects of market volatilities on ANT 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 ANT with a short position of Putnam Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Putnam Multi.

Diversification Opportunities for ANT and Putnam Multi

0.09

Correlation Coefficient

ANT  Putnam Multi

Significant diversification

The 3 months correlation between ANT and Putnam is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Putnam Multi Cap Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Multi Cap and ANT 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 ANT 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 ANT i.e., ANT and Putnam Multi go up and down completely randomly.

Pair Corralation between ANT and Putnam Multi

Assuming the 90 days trading horizon ANT is expected to generate 70.1 times more return on investment than Putnam Multi. However, ANT is 70.1 times more volatile than Putnam Multi Cap Value. It trades about 0.21 of its potential returns per unit of risk. Putnam Multi Cap Value is currently generating about -0.08 per unit of risk. If you would invest  147.00  in ANT on October 10, 2024 and sell it today you would earn a total of  0.00  from holding ANT or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

ANT  vs.  Putnam Multi Cap Value

ANT

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ANT are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, ANT exhibited solid returns over the last few months and may actually be approaching a breakup point.

Putnam Multi Cap

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Putnam Multi Cap Value has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with ANT and Putnam Multi

The main advantage of trading using opposite ANT and Putnam Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT 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.

The idea behind ANT and Putnam Multi Cap Value 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.