Correlation Between Tfa Alphagen and Putnam Floating
Can any of the company-specific risk be diversified away by investing in both Tfa Alphagen and Putnam Floating 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 Putnam Floating 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 Putnam Floating Rate, you can compare the effects of market volatilities on Tfa Alphagen and Putnam Floating 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 Putnam Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tfa Alphagen and Putnam Floating.
Diversification Opportunities for Tfa Alphagen and Putnam Floating
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tfa and Putnam is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Tfa Alphagen Growth and Putnam Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Floating Rate 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 Putnam Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Floating Rate has no effect on the direction of Tfa Alphagen i.e., Tfa Alphagen and Putnam Floating go up and down completely randomly.
Pair Corralation between Tfa Alphagen and Putnam Floating
Assuming the 90 days horizon Tfa Alphagen Growth is expected to generate 6.1 times more return on investment than Putnam Floating. However, Tfa Alphagen is 6.1 times more volatile than Putnam Floating Rate. It trades about 0.15 of its potential returns per unit of risk. Putnam Floating Rate is currently generating about 0.21 per unit of risk. If you would invest 1,087 in Tfa Alphagen Growth on August 25, 2024 and sell it today you would earn a total of 29.00 from holding Tfa Alphagen Growth or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tfa Alphagen Growth vs. Putnam Floating Rate
Performance |
| Timeline |
| Tfa Alphagen Growth |
| Putnam Floating Rate |
Tfa Alphagen and Putnam Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tfa Alphagen and Putnam Floating
The main advantage of trading using opposite Tfa Alphagen and Putnam Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tfa Alphagen position performs unexpectedly, Putnam Floating 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 Floating will offset losses from the drop in Putnam Floating's long position.| Tfa Alphagen vs. Semiconductor Ultrasector Profund | Tfa Alphagen vs. Balanced Fund Investor | Tfa Alphagen vs. Ab Value Fund | Tfa Alphagen vs. Small Cap Stock |
| Putnam Floating vs. Franklin Growth Opportunities | Putnam Floating vs. Small Pany Growth | Putnam Floating vs. Tfa Alphagen Growth | Putnam Floating vs. Praxis Growth Index |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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