Correlation Between Allianzgi Nfj and George Putnam
Can any of the company-specific risk be diversified away by investing in both Allianzgi Nfj and George Putnam 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 Allianzgi Nfj and George Putnam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Nfj Small Cap and George Putnam Fund, you can compare the effects of market volatilities on Allianzgi Nfj and George Putnam 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 Allianzgi Nfj with a short position of George Putnam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Nfj and George Putnam.
Diversification Opportunities for Allianzgi Nfj and George Putnam
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allianzgi and George is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Nfj Small Cap and George Putnam Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on George Putnam and Allianzgi Nfj 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 Allianzgi Nfj Small Cap are associated (or correlated) with George Putnam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of George Putnam has no effect on the direction of Allianzgi Nfj i.e., Allianzgi Nfj and George Putnam go up and down completely randomly.
Pair Corralation between Allianzgi Nfj and George Putnam
Assuming the 90 days horizon Allianzgi Nfj is expected to generate 1.12 times less return on investment than George Putnam. In addition to that, Allianzgi Nfj is 2.51 times more volatile than George Putnam Fund. It trades about 0.06 of its total potential returns per unit of risk. George Putnam Fund is currently generating about 0.17 per unit of volatility. If you would invest 2,028 in George Putnam Fund on August 25, 2024 and sell it today you would earn a total of 602.00 from holding George Putnam Fund or generate 29.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Nfj Small Cap vs. George Putnam Fund
Performance |
| Timeline |
| Allianzgi Nfj Small |
| George Putnam |
Allianzgi Nfj and George Putnam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Nfj and George Putnam
The main advantage of trading using opposite Allianzgi Nfj and George Putnam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Nfj position performs unexpectedly, George Putnam 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 George Putnam will offset losses from the drop in George Putnam's long position.| Allianzgi Nfj vs. Lebenthal Lisanti Small | Allianzgi Nfj vs. Hodges Small Cap | Allianzgi Nfj vs. Oberweis Small Cap Opportunities | Allianzgi Nfj vs. Aegis Value Fund |
| George Putnam vs. Great West Loomis Sayles | George Putnam vs. Mid Cap Value Profund | George Putnam vs. Ab Discovery Value | George Putnam vs. Amg River Road |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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