Correlation Between Tiaa Cref and Putnam Asia
Can any of the company-specific risk be diversified away by investing in both Tiaa Cref and Putnam Asia 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 Tiaa Cref and Putnam Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tiaa Cref Small Cap Blend and Putnam Asia Pacific, you can compare the effects of market volatilities on Tiaa Cref and Putnam Asia 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 Tiaa Cref with a short position of Putnam Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa Cref and Putnam Asia.
Diversification Opportunities for Tiaa Cref and Putnam Asia
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tiaa and Putnam is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Small Cap Blend and Putnam Asia Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Asia Pacific and Tiaa Cref 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 Tiaa Cref Small Cap Blend are associated (or correlated) with Putnam Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Asia Pacific has no effect on the direction of Tiaa Cref i.e., Tiaa Cref and Putnam Asia go up and down completely randomly.
Pair Corralation between Tiaa Cref and Putnam Asia
Assuming the 90 days horizon Tiaa Cref Small Cap Blend is expected to generate 6.36 times more return on investment than Putnam Asia. However, Tiaa Cref is 6.36 times more volatile than Putnam Asia Pacific. It trades about 0.04 of its potential returns per unit of risk. Putnam Asia Pacific is currently generating about 0.04 per unit of risk. If you would invest 1,978 in Tiaa Cref Small Cap Blend on September 29, 2024 and sell it today you would earn a total of 414.00 from holding Tiaa Cref Small Cap Blend or generate 20.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 99.8% |
Values | Daily Returns |
Tiaa Cref Small Cap Blend vs. Putnam Asia Pacific
Performance |
Timeline |
Tiaa Cref Small |
Putnam Asia Pacific |
Tiaa Cref and Putnam Asia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tiaa Cref and Putnam Asia
The main advantage of trading using opposite Tiaa Cref and Putnam Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa Cref position performs unexpectedly, Putnam Asia 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 Asia will offset losses from the drop in Putnam Asia's long position.Tiaa Cref vs. Tiaa Cref Emerging Markets | Tiaa Cref vs. Tiaa Cref Emerging Markets | Tiaa Cref vs. Tiaa Cref Emerging Markets | Tiaa Cref vs. Tiaa Cref Emerging Markets |
Putnam Asia vs. Princeton Premium | Putnam Asia vs. Princeton Premium | Putnam Asia vs. Princeton Adaptive Premium | Putnam Asia vs. Great West Multi Manager Large |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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