Correlation Between Cibc Atlas and Putnam Convertible

Can any of the company-specific risk be diversified away by investing in both Cibc Atlas and Putnam Convertible 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 Cibc Atlas and Putnam Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cibc Atlas International and Putnam Convertible Securities, you can compare the effects of market volatilities on Cibc Atlas and Putnam Convertible 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 Cibc Atlas with a short position of Putnam Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cibc Atlas and Putnam Convertible.

Diversification Opportunities for Cibc Atlas and Putnam Convertible

0.64

Correlation Coefficient

Cibc Atlas  Putnam Convertible

Poor diversification

The 3 months correlation between Cibc and Putnam is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Cibc Atlas International and Putnam Convertible Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Convertible and Cibc Atlas 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 Cibc Atlas International are associated (or correlated) with Putnam Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Convertible has no effect on the direction of Cibc Atlas i.e., Cibc Atlas and Putnam Convertible go up and down completely randomly.

Pair Corralation between Cibc Atlas and Putnam Convertible

Assuming the 90 days horizon Cibc Atlas International is expected to generate 1.49 times more return on investment than Putnam Convertible. However, Cibc Atlas is 1.49 times more volatile than Putnam Convertible Securities. It trades about 0.07 of its potential returns per unit of risk. Putnam Convertible Securities is currently generating about 0.09 per unit of risk. If you would invest  1,406  in Cibc Atlas International on May 30, 2025 and sell it today you would earn a total of  145.00  from holding Cibc Atlas International or generate 10.31% return on investment over 90 days.

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

Cibc Atlas International  vs.  Putnam Convertible Securities

Cibc Atlas International

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Cibc Atlas International are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Cibc Atlas is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Putnam Convertible

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Putnam Convertible Securities are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Putnam Convertible is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cibc Atlas and Putnam Convertible

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

The idea behind Cibc Atlas International and Putnam Convertible Securities 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.