Correlation Between Strategic Allocation: and Putman Absolute
Can any of the company-specific risk be diversified away by investing in both Strategic Allocation: and Putman Absolute 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 Strategic Allocation: and Putman Absolute into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategic Allocation Aggressive and Putman Absolute Return, you can compare the effects of market volatilities on Strategic Allocation: and Putman Absolute 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 Strategic Allocation: with a short position of Putman Absolute. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategic Allocation: and Putman Absolute.
Diversification Opportunities for Strategic Allocation: and Putman Absolute
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Strategic and Putman is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Allocation Aggressiv and Putman Absolute Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putman Absolute Return and Strategic Allocation: 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 Strategic Allocation Aggressive are associated (or correlated) with Putman Absolute. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putman Absolute Return has no effect on the direction of Strategic Allocation: i.e., Strategic Allocation: and Putman Absolute go up and down completely randomly.
Pair Corralation between Strategic Allocation: and Putman Absolute
Assuming the 90 days horizon Strategic Allocation Aggressive is expected to generate 3.18 times more return on investment than Putman Absolute. However, Strategic Allocation: is 3.18 times more volatile than Putman Absolute Return. It trades about 0.08 of its potential returns per unit of risk. Putman Absolute Return is currently generating about -0.15 per unit of risk. If you would invest 693.00 in Strategic Allocation Aggressive on September 4, 2024 and sell it today you would earn a total of 187.00 from holding Strategic Allocation Aggressive or generate 26.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.49% |
| Values | Daily Returns |
Strategic Allocation Aggressiv vs. Putman Absolute Return
Performance |
| Timeline |
| Strategic Allocation: |
| Putman Absolute Return |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Strategic Allocation: and Putman Absolute Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strategic Allocation: and Putman Absolute
The main advantage of trading using opposite Strategic Allocation: and Putman Absolute positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategic Allocation: position performs unexpectedly, Putman Absolute 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 Putman Absolute will offset losses from the drop in Putman Absolute's long position.| Strategic Allocation: vs. Royce Global Financial | Strategic Allocation: vs. Goldman Sachs Financial | Strategic Allocation: vs. Davis Financial Fund | Strategic Allocation: vs. Gabelli Global Financial |
| Putman Absolute vs. Siit Global Managed | Putman Absolute vs. 361 Global Longshort | Putman Absolute vs. Franklin Mutual Global | Putman Absolute vs. Doubleline Global Bond |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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