Correlation Between ACMAT Corp and Putnam Short
Can any of the company-specific risk be diversified away by investing in both ACMAT Corp and Putnam Short 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 ACMAT Corp and Putnam Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACMAT Corp and Putnam Short Duration, you can compare the effects of market volatilities on ACMAT Corp and Putnam Short 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 ACMAT Corp with a short position of Putnam Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACMAT Corp and Putnam Short.
Diversification Opportunities for ACMAT Corp and Putnam Short
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ACMAT and Putnam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ACMAT Corp and Putnam Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Short Duration and ACMAT Corp 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 ACMAT Corp are associated (or correlated) with Putnam Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Short Duration has no effect on the direction of ACMAT Corp i.e., ACMAT Corp and Putnam Short go up and down completely randomly.
Pair Corralation between ACMAT Corp and Putnam Short
If you would invest 997.00 in Putnam Short Duration on February 14, 2024 and sell it today you would earn a total of 13.00 from holding Putnam Short Duration or generate 1.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
ACMAT Corp vs. Putnam Short Duration
Performance |
Timeline |
ACMAT Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Putnam Short Duration |
ACMAT Corp and Putnam Short Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ACMAT Corp and Putnam Short
The main advantage of trading using opposite ACMAT Corp and Putnam Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACMAT Corp position performs unexpectedly, Putnam Short 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 Short will offset losses from the drop in Putnam Short's long position.ACMAT Corp vs. MGIC Investment Corp | ACMAT Corp vs. NMI Holdings | ACMAT Corp vs. Employers Holdings | ACMAT Corp vs. James River Group |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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