Correlation Between Georgia Tax-free and Putman Absolute
Can any of the company-specific risk be diversified away by investing in both Georgia Tax-free and Putman Absolute 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 Georgia Tax-free and Putman Absolute into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Georgia Tax Free Bond and Putman Absolute Return, you can compare the effects of market volatilities on Georgia Tax-free and Putman Absolute 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 Georgia Tax-free with a short position of Putman Absolute. Check out your portfolio center. Please also check ongoing floating volatility patterns of Georgia Tax-free and Putman Absolute.
Diversification Opportunities for Georgia Tax-free and Putman Absolute
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Georgia and Putman is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Georgia Tax Free Bond and Putman Absolute Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putman Absolute Return and Georgia Tax-free 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 Georgia Tax Free Bond are associated (or correlated) with Putman Absolute. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putman Absolute Return has no effect on the direction of Georgia Tax-free i.e., Georgia Tax-free and Putman Absolute go up and down completely randomly.
Pair Corralation between Georgia Tax-free and Putman Absolute
If you would invest 1,081 in Georgia Tax Free Bond on October 23, 2024 and sell it today you would earn a total of 0.00 from holding Georgia Tax Free Bond or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Georgia Tax Free Bond vs. Putman Absolute Return
Performance |
| Timeline |
| Georgia Tax Free |
| Putman Absolute Return |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Georgia Tax-free and Putman Absolute Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Georgia Tax-free and Putman Absolute
The main advantage of trading using opposite Georgia Tax-free and Putman Absolute positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Georgia Tax-free position performs unexpectedly, Putman Absolute 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 Putman Absolute will offset losses from the drop in Putman Absolute's long position.| Georgia Tax-free vs. First Eagle Gold | Georgia Tax-free vs. Short Precious Metals | Georgia Tax-free vs. Gamco Global Gold | Georgia Tax-free vs. Great West Goldman Sachs |
| Putman Absolute vs. Delaware Limited Term Diversified | Putman Absolute vs. Alternative Asset Allocation | Putman Absolute vs. T Rowe Price | Putman Absolute vs. Nasdaq 100 Profund Nasdaq 100 |
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.
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