Correlation Between Mid Cap and Putman Absolute
Can any of the company-specific risk be diversified away by investing in both Mid Cap 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 Mid Cap and Putman Absolute into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Cap Growth and Putman Absolute Return, you can compare the effects of market volatilities on Mid Cap 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 Mid Cap with a short position of Putman Absolute. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid Cap and Putman Absolute.
Diversification Opportunities for Mid Cap and Putman Absolute
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mid and Putman is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Growth 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 Mid Cap 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 Mid Cap Growth 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 Mid Cap i.e., Mid Cap and Putman Absolute go up and down completely randomly.
Pair Corralation between Mid Cap and Putman Absolute
If you would invest 4,020 in Mid Cap Growth on September 14, 2024 and sell it today you would lose (4.00) from holding Mid Cap Growth or give up 0.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Mid Cap Growth vs. Putman Absolute Return
Performance |
| Timeline |
| Mid Cap Growth |
| Putman Absolute Return |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mid Cap and Putman Absolute Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid Cap and Putman Absolute
The main advantage of trading using opposite Mid Cap and Putman Absolute positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid Cap 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.| Mid Cap vs. Touchstone Mid Cap | Mid Cap vs. Federated Mdt Small | Mid Cap vs. Harding Loevner International | Mid Cap vs. Sterling Capital Equity |
| Putman Absolute vs. Artisan Global Unconstrained | Putman Absolute vs. Ab Global Risk | Putman Absolute vs. Investec Global Franchise | Putman Absolute vs. Dreyfusstandish Global Fixed |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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