Correlation Between Putnam Convertible and Aim Investment
Can any of the company-specific risk be diversified away by investing in both Putnam Convertible and Aim Investment 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 Aim Investment 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 Aim Investment Securities, you can compare the effects of market volatilities on Putnam Convertible and Aim Investment 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 Aim Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Convertible and Aim Investment.
Diversification Opportunities for Putnam Convertible and Aim Investment
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Putnam and Aim is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Convertible Incm Gwth and Aim Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim Investment Securities 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 Aim Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim Investment Securities has no effect on the direction of Putnam Convertible i.e., Putnam Convertible and Aim Investment go up and down completely randomly.
Pair Corralation between Putnam Convertible and Aim Investment
Assuming the 90 days horizon Putnam Convertible Incm Gwth is expected to under-perform the Aim Investment. In addition to that, Putnam Convertible is 2.47 times more volatile than Aim Investment Securities. It trades about -0.15 of its total potential returns per unit of risk. Aim Investment Securities is currently generating about -0.25 per unit of volatility. If you would invest 2,522 in Aim Investment Securities on January 8, 2025 and sell it today you would lose (68.00) from holding Aim Investment Securities or give up 2.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Convertible Incm Gwth vs. Aim Investment Securities
Performance |
| Timeline |
| Putnam Convertible Incm |
| Aim Investment Securities |
Putnam Convertible and Aim Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Convertible and Aim Investment
The main advantage of trading using opposite Putnam Convertible and Aim Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Convertible position performs unexpectedly, Aim Investment 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 Aim Investment will offset losses from the drop in Aim Investment's long position.| Putnam Convertible vs. Putnam Equity Income | Putnam Convertible vs. Putnam Tax Exempt | Putnam Convertible vs. Putnam Floating Rate | Putnam Convertible vs. Putnam High Yield |
| Aim Investment vs. Invesco Municipal Income | Aim Investment vs. Invesco Municipal Income | Aim Investment vs. Invesco Municipal Income | Aim Investment vs. Oppenheimer Rising Dividends |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |