Correlation Between Artisan Small and Putnam Ohio

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

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

Diversification Opportunities for Artisan Small and Putnam Ohio

0.53

Correlation Coefficient

Artisan Small  Putnam Ohio

Very weak diversification

The 3 months correlation between Artisan and Putnam is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Small Cap and Putnam Ohio Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Ohio Tax and Artisan Small 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 Small Cap are associated (or correlated) with Putnam Ohio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Ohio Tax has no effect on the direction of Artisan Small i.e., Artisan Small and Putnam Ohio go up and down completely randomly.

Pair Corralation between Artisan Small and Putnam Ohio

Assuming the 90 days horizon Artisan Small Cap is expected to under-perform the Putnam Ohio. In addition to that, Artisan Small is 4.88 times more volatile than Putnam Ohio Tax. It trades about -0.14 of its total potential returns per unit of risk. Putnam Ohio Tax is currently generating about -0.38 per unit of volatility. If you would invest  844.00  in Putnam Ohio Tax on October 13, 2024 and sell it today you would lose (16.00) from holding Putnam Ohio Tax or give up 1.9% of portfolio value over 90 days.

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

Artisan Small Cap  vs.  Putnam Ohio Tax

Artisan Small Cap

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Artisan Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Artisan Small is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Putnam Ohio Tax

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Putnam Ohio Tax has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical indicators, Putnam Ohio 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 Small and Putnam Ohio

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

The idea behind Artisan Small Cap and Putnam Ohio Tax 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.