Correlation Between Putnam Diversified and Aqr Diversified
Can any of the company-specific risk be diversified away by investing in both Putnam Diversified 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 Diversified 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 Diversified Income and Aqr Diversified Arbitrage, you can compare the effects of market volatilities on Putnam Diversified 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 Diversified with a short position of Aqr Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Diversified and Aqr Diversified.
Diversification Opportunities for Putnam Diversified 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 Diversified Income 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 Diversified 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 Diversified Income 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 Diversified i.e., Putnam Diversified and Aqr Diversified go up and down completely randomly.
Pair Corralation between Putnam Diversified and Aqr Diversified
If you would invest 1,204 in Aqr Diversified Arbitrage on October 23, 2024 and sell it today you would earn a total of 13.00 from holding Aqr Diversified Arbitrage or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Diversified Income vs. Aqr Diversified Arbitrage
Performance |
| Timeline |
| Putnam Diversified Income |
| Aqr Diversified Arbitrage |
Putnam Diversified and Aqr Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Diversified and Aqr Diversified
The main advantage of trading using opposite Putnam Diversified and Aqr Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Diversified 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 Diversified vs. Df Dent Small | Putnam Diversified vs. Hunter Small Cap | Putnam Diversified vs. Touchstone Small Cap | Putnam Diversified vs. Smallcap Fund Fka |
| Aqr Diversified vs. Advent Claymore Convertible | Aqr Diversified vs. Allianzgi Convertible Income | Aqr Diversified vs. Absolute Convertible Arbitrage | Aqr Diversified vs. Lord Abbett Convertible |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |