Correlation Between Putnam Small and Aqr Diversified
Can any of the company-specific risk be diversified away by investing in both Putnam Small and Aqr 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 Putnam Small and Aqr Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Small Cap and Aqr Diversified Arbitrage, you can compare the effects of market volatilities on Putnam Small and Aqr 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 Putnam Small with a short position of Aqr Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Small and Aqr Diversified.
Diversification Opportunities for Putnam Small and Aqr Diversified
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Putnam and Aqr is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Small Cap and Aqr Diversified Arbitrage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Diversified Arbitrage and Putnam Small 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 Small Cap are associated (or correlated) with Aqr Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Diversified Arbitrage has no effect on the direction of Putnam Small i.e., Putnam Small and Aqr Diversified go up and down completely randomly.
Pair Corralation between Putnam Small and Aqr Diversified
If you would invest 1,208 in Aqr Diversified Arbitrage on October 28, 2024 and sell it today you would earn a total of 9.00 from holding Aqr Diversified Arbitrage or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Small Cap vs. Aqr Diversified Arbitrage
Performance |
| Timeline |
| Putnam Small Cap |
| Aqr Diversified Arbitrage |
Putnam Small and Aqr Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Small and Aqr Diversified
The main advantage of trading using opposite Putnam Small and Aqr Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Small position performs unexpectedly, Aqr 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 Aqr Diversified will offset losses from the drop in Aqr Diversified's long position.| Putnam Small vs. Pnc Balanced Allocation | Putnam Small vs. Guidemark Large Cap | Putnam Small vs. Tax Managed Large Cap | Putnam Small vs. Rational Strategic Allocation |
| Aqr Diversified vs. Tiaa Cref Lifestyle Moderate | Aqr Diversified vs. Putnman Retirement Ready | Aqr Diversified vs. College Retirement Equities | Aqr Diversified vs. American Funds Retirement |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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