Correlation Between Angel Oak and George Putnam
Can any of the company-specific risk be diversified away by investing in both Angel Oak and George 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 Angel Oak and George Putnam 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 George Putnam Balanced, you can compare the effects of market volatilities on Angel Oak and George 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 Angel Oak with a short position of George Putnam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and George Putnam.
Diversification Opportunities for Angel Oak and George Putnam
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Angel and George is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and George Putnam Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on George Putnam Balanced 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 George Putnam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of George Putnam Balanced has no effect on the direction of Angel Oak i.e., Angel Oak and George Putnam go up and down completely randomly.
Pair Corralation between Angel Oak and George Putnam
Assuming the 90 days horizon Angel Oak Financial is expected to generate 0.33 times more return on investment than George Putnam. However, Angel Oak Financial is 3.01 times less risky than George Putnam. It trades about -0.02 of its potential returns per unit of risk. George Putnam Balanced is currently generating about -0.11 per unit of risk. If you would invest 1,414 in Angel Oak Financial on December 1, 2024 and sell it today you would lose (1.00) from holding Angel Oak Financial or give up 0.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. George Putnam Balanced
Performance |
| Timeline |
| Angel Oak Financial |
| George Putnam Balanced |
Angel Oak and George Putnam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and George Putnam
The main advantage of trading using opposite Angel Oak and George Putnam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, George 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 George Putnam will offset losses from the drop in George Putnam's long position.| Angel Oak vs. Us Government Securities | Angel Oak vs. Franklin Adjustable Government | Angel Oak vs. Ab Municipal Bond | Angel Oak vs. Lord Abbett Intermediate |
| George Putnam vs. Doubleline Emerging Markets | George Putnam vs. Ab Bond Inflation | George Putnam vs. Ambrus Core Bond | George Putnam vs. Guidemark E 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Global Correlations Find global opportunities by holding instruments from different markets |