Correlation Between Artisan Select and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Artisan Select and Putnam Global 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 Artisan Select and Putnam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Select Equity and Putnam Global Financials, you can compare the effects of market volatilities on Artisan Select and Putnam Global 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 Artisan Select with a short position of Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Select and Putnam Global.
Diversification Opportunities for Artisan Select and Putnam Global
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Artisan and Putnam is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Select Equity and Putnam Global Financials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Financials and Artisan Select 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 Artisan Select Equity are associated (or correlated) with Putnam Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Global Financials has no effect on the direction of Artisan Select i.e., Artisan Select and Putnam Global go up and down completely randomly.
Pair Corralation between Artisan Select and Putnam Global
Assuming the 90 days horizon Artisan Select Equity is expected to generate 1.53 times more return on investment than Putnam Global. However, Artisan Select is 1.53 times more volatile than Putnam Global Financials. It trades about 0.02 of its potential returns per unit of risk. Putnam Global Financials is currently generating about -0.06 per unit of risk. If you would invest 1,631 in Artisan Select Equity on October 30, 2024 and sell it today you would earn a total of 7.00 from holding Artisan Select Equity or generate 0.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Select Equity vs. Putnam Global Financials
Performance |
| Timeline |
| Artisan Select Equity |
| Putnam Global Financials |
Artisan Select and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Select and Putnam Global
The main advantage of trading using opposite Artisan Select and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Select position performs unexpectedly, Putnam Global 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 Global will offset losses from the drop in Putnam Global's long position.| Artisan Select vs. Heartland Value Plus | Artisan Select vs. Small Cap Value | Artisan Select vs. Fpa Queens Road | Artisan Select vs. Fidelity Small Cap |
| Putnam Global vs. Putnam Equity Income | Putnam Global vs. Putnam Tax Exempt | Putnam Global vs. Putnam Floating Rate | Putnam Global vs. Putnam Floating Rate |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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