Correlation Between Allianzgi Convertible and Putnam International
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and Putnam International 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 Allianzgi Convertible and Putnam International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Convertible Income and Putnam International Capital, you can compare the effects of market volatilities on Allianzgi Convertible and Putnam International 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 Allianzgi Convertible with a short position of Putnam International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Putnam International.
Diversification Opportunities for Allianzgi Convertible and Putnam International
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Allianzgi and Putnam is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Putnam International Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam International and Allianzgi Convertible 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 Allianzgi Convertible Income are associated (or correlated) with Putnam International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam International has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Putnam International go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and Putnam International
Assuming the 90 days horizon Allianzgi Convertible Income is expected to generate 0.86 times more return on investment than Putnam International. However, Allianzgi Convertible Income is 1.16 times less risky than Putnam International. It trades about 0.08 of its potential returns per unit of risk. Putnam International Capital is currently generating about 0.04 per unit of risk. If you would invest 329.00 in Allianzgi Convertible Income on September 2, 2024 and sell it today you would earn a total of 79.00 from holding Allianzgi Convertible Income or generate 24.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Convertible Income vs. Putnam International Capital
Performance |
| Timeline |
| Allianzgi Convertible |
| Putnam International |
Allianzgi Convertible and Putnam International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Convertible and Putnam International
The main advantage of trading using opposite Allianzgi Convertible and Putnam International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible position performs unexpectedly, Putnam International 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 International will offset losses from the drop in Putnam International's long position.| Allianzgi Convertible vs. Fidelity Advisor Health | Allianzgi Convertible vs. Delaware Healthcare Fund | Allianzgi Convertible vs. Allianzgi Health Sciences | Allianzgi Convertible vs. Invesco Global Health |
| Putnam International vs. Us Strategic Equity | Putnam International vs. Us Vector Equity | Putnam International vs. Ms Global Fixed | Putnam International vs. Icon Equity Income |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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