Correlation Between Aig Government and Putnam Multi
Can any of the company-specific risk be diversified away by investing in both Aig Government and Putnam Multi 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 Aig Government and Putnam Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aig Government Money and Putnam Multi Cap Growth, you can compare the effects of market volatilities on Aig Government and Putnam Multi 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 Aig Government with a short position of Putnam Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Putnam Multi.
Diversification Opportunities for Aig Government and Putnam Multi
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aig and Putnam is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Putnam Multi Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Multi Cap and Aig Government 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 Aig Government Money are associated (or correlated) with Putnam Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Multi Cap has no effect on the direction of Aig Government i.e., Aig Government and Putnam Multi go up and down completely randomly.
Pair Corralation between Aig Government and Putnam Multi
Assuming the 90 days horizon Aig Government Money is expected to generate 0.06 times more return on investment than Putnam Multi. However, Aig Government Money is 18.14 times less risky than Putnam Multi. It trades about 0.49 of its potential returns per unit of risk. Putnam Multi Cap Growth is currently generating about -0.16 per unit of risk. If you would invest 1,007 in Aig Government Money on September 12, 2024 and sell it today you would earn a total of 11.00 from holding Aig Government Money or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. Putnam Multi Cap Growth
Performance |
| Timeline |
| Aig Government Money |
| Putnam Multi Cap |
Aig Government and Putnam Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Putnam Multi
The main advantage of trading using opposite Aig Government and Putnam Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Putnam Multi 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 Putnam Multi will offset losses from the drop in Putnam Multi's long position.| Aig Government vs. SCOR PK | Aig Government vs. Morningstar Unconstrained Allocation | Aig Government vs. Via Renewables | Aig Government vs. Bondbloxx ETF Trust |
| Putnam Multi vs. American Funds The | Putnam Multi vs. American Funds The | Putnam Multi vs. Growth Fund Of | Putnam Multi vs. Growth Fund Of |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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