Correlation Between Ab High and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Ab High and Putnam Global 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 Ab High and Putnam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab High Income and Putnam Global Equity, you can compare the effects of market volatilities on Ab High and Putnam Global 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 Ab High with a short position of Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab High and Putnam Global.
Diversification Opportunities for Ab High and Putnam Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGDAX and Putnam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ab High Income and Putnam Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Equity and Ab High 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 Ab High Income are associated (or correlated) with Putnam Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Global Equity has no effect on the direction of Ab High i.e., Ab High and Putnam Global go up and down completely randomly.
Pair Corralation between Ab High and Putnam Global
Assuming the 90 days horizon Ab High Income is expected to generate 0.34 times more return on investment than Putnam Global. However, Ab High Income is 2.98 times less risky than Putnam Global. It trades about 0.28 of its potential returns per unit of risk. Putnam Global Equity is currently generating about 0.06 per unit of risk. If you would invest 663.00 in Ab High Income on September 13, 2024 and sell it today you would earn a total of 45.00 from holding Ab High Income or generate 6.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab High Income vs. Putnam Global Equity
Performance |
| Timeline |
| Ab High Income |
| Putnam Global Equity |
Ab High and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab High and Putnam Global
The main advantage of trading using opposite Ab High and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab High position performs unexpectedly, Putnam Global 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 Global will offset losses from the drop in Putnam Global's long position.| Ab High vs. Absolute Convertible Arbitrage | Ab High vs. Gabelli Convertible And | Ab High vs. Advent Claymore Convertible | Ab High vs. Allianzgi Convertible Income |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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