Correlation Between Putnam Money and Aig Government
Can any of the company-specific risk be diversified away by investing in both Putnam Money and Aig Government 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 Aig Government 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 Aig Government Money, you can compare the effects of market volatilities on Putnam Money and Aig Government 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 Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Money and Aig Government.
Diversification Opportunities for Putnam Money and Aig Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Putnam and Aig is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Money Market and Aig Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aig Government Money 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 Aig Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aig Government Money has no effect on the direction of Putnam Money i.e., Putnam Money and Aig Government go up and down completely randomly.
Pair Corralation between Putnam Money and Aig Government
If you would invest 1,005 in Aig Government Money on November 4, 2024 and sell it today you would earn a total of 3.00 from holding Aig Government Money or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Money Market vs. Aig Government Money
Performance |
| Timeline |
| Putnam Money Market |
| Aig Government Money |
Putnam Money and Aig Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Money and Aig Government
The main advantage of trading using opposite Putnam Money and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Money position performs unexpectedly, Aig Government 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 Aig Government will offset losses from the drop in Aig Government's long position.| Putnam Money vs. Vanguard Health Care | Putnam Money vs. Health Care Ultrasector | Putnam Money vs. Baillie Gifford Health | Putnam Money vs. Blackrock Health Sciences |
| Aig Government vs. Federated Emerging Market | Aig Government vs. Angel Oak Multi Strategy | Aig Government vs. Siit Emerging Markets | Aig Government vs. Ashmore Emerging Markets |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |