Correlation Between Anchor Risk and Putman Absolute

Can any of the company-specific risk be diversified away by investing in both Anchor Risk and Putman Absolute 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 Anchor Risk and Putman Absolute into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Anchor Risk Managed and Putman Absolute Return, you can compare the effects of market volatilities on Anchor Risk and Putman Absolute 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 Anchor Risk with a short position of Putman Absolute. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anchor Risk and Putman Absolute.

Diversification Opportunities for Anchor Risk and Putman Absolute

0.78

Correlation Coefficient

Anchor Risk  Putman Absolute

Poor diversification

The 3 months correlation between Anchor and Putman is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Anchor Risk Managed and Putman Absolute Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putman Absolute Return and Anchor Risk 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 Anchor Risk Managed are associated (or correlated) with Putman Absolute. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putman Absolute Return has no effect on the direction of Anchor Risk i.e., Anchor Risk and Putman Absolute go up and down completely randomly.

Pair Corralation between Anchor Risk and Putman Absolute

Assuming the 90 days horizon Anchor Risk Managed is expected to generate 3.57 times more return on investment than Putman Absolute. However, Anchor Risk is 3.57 times more volatile than Putman Absolute Return. It trades about 0.16 of its potential returns per unit of risk. Putman Absolute Return is currently generating about 0.12 per unit of risk. If you would invest  1,531  in Anchor Risk Managed on August 4, 2025 and sell it today you would earn a total of  119.00  from holding Anchor Risk Managed or generate 7.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Anchor Risk Managed  vs.  Putman Absolute Return

Anchor Risk Managed

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Anchor Risk Managed are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Anchor Risk may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Putman Absolute Return

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Putman Absolute Return are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Putman Absolute is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Anchor Risk and Putman Absolute

The main advantage of trading using opposite Anchor Risk and Putman Absolute positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anchor Risk position performs unexpectedly, Putman Absolute 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 Putman Absolute will offset losses from the drop in Putman Absolute's long position.

The idea behind Anchor Risk Managed and Putman Absolute Return pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.