Correlation Between Auer Growth and Putnam Diversified
Can any of the company-specific risk be diversified away by investing in both Auer Growth and Putnam Diversified 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 Auer Growth and Putnam Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auer Growth Fund and Putnam Diversified Income, you can compare the effects of market volatilities on Auer Growth and Putnam Diversified 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 Auer Growth with a short position of Putnam Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auer Growth and Putnam Diversified.
Diversification Opportunities for Auer Growth and Putnam Diversified
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Auer and PUTNAM is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Auer Growth Fund and Putnam Diversified Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Diversified Income and Auer Growth 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 Auer Growth Fund are associated (or correlated) with Putnam Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Diversified Income has no effect on the direction of Auer Growth i.e., Auer Growth and Putnam Diversified go up and down completely randomly.
Pair Corralation between Auer Growth and Putnam Diversified
Assuming the 90 days horizon Auer Growth Fund is expected to generate 4.66 times more return on investment than Putnam Diversified. However, Auer Growth is 4.66 times more volatile than Putnam Diversified Income. It trades about 0.06 of its potential returns per unit of risk. Putnam Diversified Income is currently generating about 0.14 per unit of risk. If you would invest 1,651 in Auer Growth Fund on September 3, 2024 and sell it today you would earn a total of 117.00 from holding Auer Growth Fund or generate 7.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auer Growth Fund vs. Putnam Diversified Income
Performance |
| Timeline |
| Auer Growth Fund |
| Putnam Diversified Income |
Auer Growth and Putnam Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auer Growth and Putnam Diversified
The main advantage of trading using opposite Auer Growth and Putnam Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auer Growth position performs unexpectedly, Putnam Diversified 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 Diversified will offset losses from the drop in Putnam Diversified's long position.| Auer Growth vs. Lebenthal Lisanti Small | Auer Growth vs. Hodges Small Cap | Auer Growth vs. Schwartz Value Focused | Auer Growth vs. Oberweis Small Cap Opportunities |
| Putnam Diversified vs. Ab Small Cap | Putnam Diversified vs. T Rowe Price | Putnam Diversified vs. Auer Growth Fund | Putnam Diversified vs. Commodities Strategy Fund |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |