Correlation Between Tfa Alphagen and Great-west Putnam
Can any of the company-specific risk be diversified away by investing in both Tfa Alphagen and Great-west Putnam 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 Tfa Alphagen and Great-west Putnam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tfa Alphagen Growth and Great West Putnam High, you can compare the effects of market volatilities on Tfa Alphagen and Great-west Putnam 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 Tfa Alphagen with a short position of Great-west Putnam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tfa Alphagen and Great-west Putnam.
Diversification Opportunities for Tfa Alphagen and Great-west Putnam
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tfa and Great-west is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Tfa Alphagen Growth and Great West Putnam High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Putnam and Tfa Alphagen 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 Tfa Alphagen Growth are associated (or correlated) with Great-west Putnam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Putnam has no effect on the direction of Tfa Alphagen i.e., Tfa Alphagen and Great-west Putnam go up and down completely randomly.
Pair Corralation between Tfa Alphagen and Great-west Putnam
Assuming the 90 days horizon Tfa Alphagen Growth is expected to generate 1.48 times more return on investment than Great-west Putnam. However, Tfa Alphagen is 1.48 times more volatile than Great West Putnam High. It trades about -0.08 of its potential returns per unit of risk. Great West Putnam High is currently generating about -0.27 per unit of risk. If you would invest 1,137 in Tfa Alphagen Growth on October 9, 2024 and sell it today you would lose (21.00) from holding Tfa Alphagen Growth or give up 1.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tfa Alphagen Growth vs. Great West Putnam High
Performance |
| Timeline |
| Tfa Alphagen Growth |
| Great West Putnam |
Tfa Alphagen and Great-west Putnam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tfa Alphagen and Great-west Putnam
The main advantage of trading using opposite Tfa Alphagen and Great-west Putnam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tfa Alphagen position performs unexpectedly, Great-west Putnam 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 Great-west Putnam will offset losses from the drop in Great-west Putnam's long position.| Tfa Alphagen vs. Aqr Large Cap | Tfa Alphagen vs. Rbb Fund Trust | Tfa Alphagen vs. Calvert Moderate Allocation | Tfa Alphagen vs. Rational Strategic Allocation |
| Great-west Putnam vs. Delaware Limited Term Diversified | Great-west Putnam vs. Ashmore Emerging Markets | Great-west Putnam vs. Inverse Emerging Markets | Great-west Putnam vs. Dws Emerging Markets |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |