Correlation Between Iaadx and Putnam Multi
Can any of the company-specific risk be diversified away by investing in both Iaadx and Putnam Multi 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 Iaadx and Putnam Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iaadx and Putnam Multi Cap Growth, you can compare the effects of market volatilities on Iaadx and Putnam Multi 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 Iaadx with a short position of Putnam Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iaadx and Putnam Multi.
Diversification Opportunities for Iaadx and Putnam Multi
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Iaadx and Putnam is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Iaadx and Putnam Multi Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Multi Cap and Iaadx 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 Iaadx are associated (or correlated) with Putnam Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Multi Cap has no effect on the direction of Iaadx i.e., Iaadx and Putnam Multi go up and down completely randomly.
Pair Corralation between Iaadx and Putnam Multi
Assuming the 90 days horizon Iaadx is expected to generate 0.06 times more return on investment than Putnam Multi. However, Iaadx is 16.1 times less risky than Putnam Multi. It trades about 0.34 of its potential returns per unit of risk. Putnam Multi Cap Growth is currently generating about -0.16 per unit of risk. If you would invest 929.00 in Iaadx on September 13, 2024 and sell it today you would earn a total of 8.00 from holding Iaadx or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iaadx vs. Putnam Multi Cap Growth
Performance |
| Timeline |
| Iaadx |
| Putnam Multi Cap |
Iaadx and Putnam Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iaadx and Putnam Multi
The main advantage of trading using opposite Iaadx and Putnam Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iaadx position performs unexpectedly, Putnam Multi 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 Multi will offset losses from the drop in Putnam Multi's long position.| Iaadx vs. Ep Emerging Markets | Iaadx vs. Aqr Long Short Equity | Iaadx vs. Extended Market Index | Iaadx vs. Pnc Emerging Markets |
| Putnam Multi vs. Ab Global Bond | Putnam Multi vs. Ab Global Risk | Putnam Multi vs. Investec Global Franchise | Putnam Multi vs. Barings Global Floating |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |