Putnam High Correlations

PFJAX Fund  USD 5.39  0.01  0.19%   
The current 90-days correlation between Putnam High Yield and Putnam Equity Income is 0.41 (i.e., Very weak diversification). The correlation of Putnam High is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Putnam High Correlation With Market

Very weak diversification

The correlation between Putnam High Yield and DJI is 0.4 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Putnam High Yield and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Putnam High Yield. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in nation.

Moving together with Putnam Mutual Fund

  0.79PEYAX Putnam Equity IncomePairCorr
  0.68PFICX Putnam Floating RatePairCorr
  0.69PFLRX Putnam Floating RatePairCorr
  0.69PFLLX Putnam Floating RatePairCorr
  0.69PFRYX Putnam Floating RatePairCorr
  0.69PFRZX Putnam Floating RatePairCorr
  0.9PGEYX George PutnamPairCorr
  0.83PGFMX Putnam Global FinancialsPairCorr
  0.9PGEJX George Putnam BalancedPairCorr
  0.9PGEOX George PutnamPairCorr
  0.9PGELX George Putnam BalancedPairCorr
  0.9PGEMX George PutnamPairCorr
  0.82PGIAX Pnc Fds GrPairCorr
  0.82PGIEX Putnam Global IndustrialsPairCorr
  0.82PGIOX Putnam Global IndustrialsPairCorr
  0.82PGILX Putnam Global IndustrialsPairCorr
  0.68PGLBX Putnam Global IncomePairCorr
  0.8PGODX Putnam Growth OpportPairCorr
  0.8PGOEX Putnam Growth OpportPairCorr
  0.9PGPRX George PutnamPairCorr
  0.8PGORX Putnam Growth OpportPairCorr
  0.8PGOYX Putnam Growth OpportPairCorr
  0.9PGPCX George PutnamPairCorr

Moving against Putnam Mutual Fund

  0.58PGEBX George PutnamPairCorr
  0.65PGHAX Putnam Global HealthPairCorr
  0.37PGVCX Putnam U SPairCorr
  0.37PGVRX Putnam U SPairCorr
  0.35PGSIX Putnam U SPairCorr

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
PFRYXPFLRX
PFRYXPFLLX
PFRZXPFLLX
PFRZXPFRYX
PXMAXPEXTX
PFLRXPFICX
  
High negative correlations   
PXMAXPFLRX
PXMAXPFICX
PXMAXPFRZX
PXMAXPFRYX
PXMAXPFLLX
PFLRXPEXTX

Risk-Adjusted Indicators

There is a big difference between Putnam Mutual Fund performing well and Putnam High Mutual Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Putnam High's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.