Correlation Between Aig Government and Putnam Panagora
Can any of the company-specific risk be diversified away by investing in both Aig Government and Putnam Panagora 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 Panagora 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 Panagora Risk, you can compare the effects of market volatilities on Aig Government and Putnam Panagora 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 Panagora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Putnam Panagora.
Diversification Opportunities for Aig Government and Putnam Panagora
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aig and Putnam is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Putnam Panagora Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Panagora Risk 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 Panagora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Panagora Risk has no effect on the direction of Aig Government i.e., Aig Government and Putnam Panagora go up and down completely randomly.
Pair Corralation between Aig Government and Putnam Panagora
If you would invest 1,004 in Aig Government Money on September 1, 2024 and sell it today you would earn a total of 8.00 from holding Aig Government Money or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Aig Government Money vs. Putnam Panagora Risk
Performance |
| Timeline |
| Aig Government Money |
| Putnam Panagora Risk |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aig Government and Putnam Panagora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Putnam Panagora
The main advantage of trading using opposite Aig Government and Putnam Panagora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Putnam Panagora 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 Panagora will offset losses from the drop in Putnam Panagora's long position.| Aig Government vs. Prudential Health Sciences | Aig Government vs. Health Biotchnology Portfolio | Aig Government vs. Baillie Gifford Health | Aig Government vs. Baron Health Care |
| Putnam Panagora vs. Ab Government Exchange | Putnam Panagora vs. Us Government Securities | Putnam Panagora vs. Franklin Government Money | Putnam Panagora vs. Aig Government Money |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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