Correlation Between Astor Longshort and Putnam Ohio
Can any of the company-specific risk be diversified away by investing in both Astor Longshort 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 Astor Longshort and Putnam Ohio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astor Longshort Fund and Putnam Ohio Tax, you can compare the effects of market volatilities on Astor Longshort 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 Astor Longshort with a short position of Putnam Ohio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Longshort and Putnam Ohio.
Diversification Opportunities for Astor Longshort and Putnam Ohio
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Astor and Putnam is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund 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 Astor Longshort 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 Astor Longshort Fund 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 Astor Longshort i.e., Astor Longshort and Putnam Ohio go up and down completely randomly.
Pair Corralation between Astor Longshort and Putnam Ohio
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 1.87 times more return on investment than Putnam Ohio. However, Astor Longshort is 1.87 times more volatile than Putnam Ohio Tax. It trades about 0.14 of its potential returns per unit of risk. Putnam Ohio Tax is currently generating about 0.06 per unit of risk. If you would invest 1,256 in Astor Longshort Fund on September 14, 2024 and sell it today you would earn a total of 171.00 from holding Astor Longshort Fund or generate 13.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Putnam Ohio Tax
Performance |
| Timeline |
| Astor Longshort |
| Putnam Ohio Tax |
Astor Longshort and Putnam Ohio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Longshort and Putnam Ohio
The main advantage of trading using opposite Astor Longshort and Putnam Ohio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Longshort 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.| Astor Longshort vs. Astor Star Fund | Astor Longshort vs. Astor Star Fund | Astor Longshort vs. Astor Longshort Fund | Astor Longshort vs. Astor Longshort Fund |
| Putnam Ohio vs. Putnam Equity Income | Putnam Ohio vs. Putnam Tax Exempt | Putnam Ohio vs. Putnam Floating Rate | Putnam Ohio vs. Putnam High Yield |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |