Correlation Between Armada Hflr and George Putnam
Can any of the company-specific risk be diversified away by investing in both Armada Hflr 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 Armada Hflr and George Putnam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Armada Hflr Pr and George Putnam Balanced, you can compare the effects of market volatilities on Armada Hflr 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 Armada Hflr with a short position of George Putnam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and George Putnam.
Diversification Opportunities for Armada Hflr and George Putnam
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Armada and George is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr 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 Armada Hflr 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 Armada Hflr Pr 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 Armada Hflr i.e., Armada Hflr and George Putnam go up and down completely randomly.
Pair Corralation between Armada Hflr and George Putnam
Considering the 90-day investment horizon Armada Hflr is expected to generate 30.38 times less return on investment than George Putnam. In addition to that, Armada Hflr is 2.89 times more volatile than George Putnam Balanced. It trades about 0.0 of its total potential returns per unit of risk. George Putnam Balanced is currently generating about 0.13 per unit of volatility. If you would invest 1,930 in George Putnam Balanced on September 25, 2024 and sell it today you would earn a total of 664.00 from holding George Putnam Balanced or generate 34.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Armada Hflr Pr vs. George Putnam Balanced
Performance |
Timeline |
Armada Hflr Pr |
George Putnam Balanced |
Armada Hflr and George Putnam Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and George Putnam
The main advantage of trading using opposite Armada Hflr and George Putnam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr 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.Armada Hflr vs. Modiv Inc | Armada Hflr vs. Precinct Properties New | Armada Hflr vs. Global Net Lease | Armada Hflr vs. NexPoint Diversified Real |
George Putnam vs. Putnam Equity Income | George Putnam vs. Putnam Tax Exempt | George Putnam vs. Putnam Floating Rate | George Putnam vs. Putnam High Yield |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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