Correlation Between Putnam Convertible and Aqr International
Can any of the company-specific risk be diversified away by investing in both Putnam Convertible and Aqr International 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 Convertible and Aqr International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Convertible Incm Gwth and Aqr International Defensive, you can compare the effects of market volatilities on Putnam Convertible and Aqr International 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 Convertible with a short position of Aqr International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Convertible and Aqr International.
Diversification Opportunities for Putnam Convertible and Aqr International
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Putnam and Aqr is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Convertible Incm Gwth and Aqr International Defensive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr International and Putnam Convertible 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 Convertible Incm Gwth are associated (or correlated) with Aqr International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr International has no effect on the direction of Putnam Convertible i.e., Putnam Convertible and Aqr International go up and down completely randomly.
Pair Corralation between Putnam Convertible and Aqr International
Assuming the 90 days horizon Putnam Convertible Incm Gwth is expected to generate 0.77 times more return on investment than Aqr International. However, Putnam Convertible Incm Gwth is 1.31 times less risky than Aqr International. It trades about 0.09 of its potential returns per unit of risk. Aqr International Defensive is currently generating about 0.05 per unit of risk. If you would invest 2,090 in Putnam Convertible Incm Gwth on August 29, 2024 and sell it today you would earn a total of 525.00 from holding Putnam Convertible Incm Gwth or generate 25.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Convertible Incm Gwth vs. Aqr International Defensive
Performance |
| Timeline |
| Putnam Convertible Incm |
| Aqr International |
Putnam Convertible and Aqr International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Convertible and Aqr International
The main advantage of trading using opposite Putnam Convertible and Aqr International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Convertible position performs unexpectedly, Aqr International 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 International will offset losses from the drop in Aqr International's long position.| Putnam Convertible vs. Ab E Opportunities | Putnam Convertible vs. Ips Strategic Capital | Putnam Convertible vs. Ab Value Fund | Putnam Convertible vs. Eic Value Fund |
| Aqr International vs. Putnam Convertible Incm Gwth | Aqr International vs. Absolute Convertible Arbitrage | Aqr International vs. Lord Abbett Vertible | Aqr International vs. Teton Vertible Securities |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |