Correlation Between Angel Oak and Putnam Dynamic
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Putnam Dynamic 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 Angel Oak and Putnam Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angel Oak Financial and Putnam Dynamic Asset, you can compare the effects of market volatilities on Angel Oak and Putnam Dynamic 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 Angel Oak with a short position of Putnam Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Putnam Dynamic.
Diversification Opportunities for Angel Oak and Putnam Dynamic
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Angel and Putnam is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Putnam Dynamic Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Dynamic Asset and Angel Oak 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 Angel Oak Financial are associated (or correlated) with Putnam Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Dynamic Asset has no effect on the direction of Angel Oak i.e., Angel Oak and Putnam Dynamic go up and down completely randomly.
Pair Corralation between Angel Oak and Putnam Dynamic
Assuming the 90 days horizon Angel Oak is expected to generate 5.85 times less return on investment than Putnam Dynamic. But when comparing it to its historical volatility, Angel Oak Financial is 2.04 times less risky than Putnam Dynamic. It trades about 0.14 of its potential returns per unit of risk. Putnam Dynamic Asset is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 1,703 in Putnam Dynamic Asset on September 4, 2024 and sell it today you would earn a total of 65.00 from holding Putnam Dynamic Asset or generate 3.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. Putnam Dynamic Asset
Performance |
| Timeline |
| Angel Oak Financial |
| Putnam Dynamic Asset |
Angel Oak and Putnam Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Putnam Dynamic
The main advantage of trading using opposite Angel Oak and Putnam Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Putnam Dynamic 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 Dynamic will offset losses from the drop in Putnam Dynamic's long position.| Angel Oak vs. Vanguard Total Stock | Angel Oak vs. Vanguard 500 Index | Angel Oak vs. Vanguard Total Stock | Angel Oak vs. Vanguard Total Stock |
| Putnam Dynamic vs. Gabelli Global Financial | Putnam Dynamic vs. Davis Financial Fund | Putnam Dynamic vs. Angel Oak Financial | Putnam Dynamic vs. Mesirow Financial Small |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |