Correlation Between Putnam U and Artisan Small
Can any of the company-specific risk be diversified away by investing in both Putnam U and Artisan Small 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 Putnam U and Artisan Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam U S and Artisan Small Cap, you can compare the effects of market volatilities on Putnam U and Artisan Small 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 Putnam U with a short position of Artisan Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam U and Artisan Small.
Diversification Opportunities for Putnam U and Artisan Small
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Putnam and Artisan is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Putnam U S and Artisan Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Small Cap and Putnam U 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 Putnam U S are associated (or correlated) with Artisan Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Small Cap has no effect on the direction of Putnam U i.e., Putnam U and Artisan Small go up and down completely randomly.
Pair Corralation between Putnam U and Artisan Small
Assuming the 90 days horizon Putnam U S is not expected to generate positive returns. However, Putnam U S is 2.11 times less risky than Artisan Small. It waists most of its returns potential to compensate for thr risk taken. Artisan Small is generating about 0.02 per unit of risk. If you would invest 3,259 in Artisan Small Cap on October 4, 2024 and sell it today you would earn a total of 263.00 from holding Artisan Small Cap or generate 8.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Putnam U S vs. Artisan Small Cap
Performance |
Timeline |
Putnam U S |
Artisan Small Cap |
Putnam U and Artisan Small Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Putnam U and Artisan Small
The main advantage of trading using opposite Putnam U and Artisan Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam U position performs unexpectedly, Artisan Small 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 Small will offset losses from the drop in Artisan Small's long position.Putnam U vs. William Blair Small | Putnam U vs. Mutual Of America | Putnam U vs. American Century Etf | Putnam U vs. Amg River Road |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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