Correlation Between Putnam Money and Artisan Small
Can any of the company-specific risk be diversified away by investing in both Putnam Money and Artisan Small 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 Putnam Money and Artisan Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Money Market and Artisan Small Cap, you can compare the effects of market volatilities on Putnam Money and Artisan Small 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 Putnam Money with a short position of Artisan Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Money and Artisan Small.
Diversification Opportunities for Putnam Money and Artisan Small
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Putnam and Artisan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Money Market and Artisan Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Small Cap and Putnam Money 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 Putnam Money Market are associated (or correlated) with Artisan Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Small Cap has no effect on the direction of Putnam Money i.e., Putnam Money and Artisan Small go up and down completely randomly.
Pair Corralation between Putnam Money and Artisan Small
Assuming the 90 days horizon Putnam Money is expected to generate 2.45 times less return on investment than Artisan Small. But when comparing it to its historical volatility, Putnam Money Market is 1.62 times less risky than Artisan Small. It trades about 0.02 of its potential returns per unit of risk. Artisan Small Cap is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,971 in Artisan Small Cap on September 25, 2024 and sell it today you would earn a total of 657.00 from holding Artisan Small Cap or generate 22.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Putnam Money Market vs. Artisan Small Cap
Performance |
| Timeline |
| Putnam Money Market |
| Artisan Small Cap |
Putnam Money and Artisan Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Money and Artisan Small
The main advantage of trading using opposite Putnam Money and Artisan Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Money position performs unexpectedly, Artisan Small 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 Artisan Small will offset losses from the drop in Artisan Small's long position.| Putnam Money vs. Cref Money Market | Putnam Money vs. Ab Government Exchange | Putnam Money vs. Money Market Obligations | Putnam Money vs. General Money Market |
| Artisan Small vs. Qs Growth Fund | Artisan Small vs. Crafword Dividend Growth | Artisan Small vs. T Rowe Price | Artisan Small vs. Praxis Growth Index |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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