Correlation Between Bruce Fund and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Bruce Fund 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 Bruce Fund and Putnam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bruce Fund Bruce and Putnam Global Health, you can compare the effects of market volatilities on Bruce Fund 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 Bruce Fund with a short position of Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bruce Fund and Putnam Global.
Diversification Opportunities for Bruce Fund and Putnam Global
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bruce and Putnam is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bruce Fund Bruce and Putnam Global Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Health and Bruce Fund 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 Bruce Fund Bruce 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 Health has no effect on the direction of Bruce Fund i.e., Bruce Fund and Putnam Global go up and down completely randomly.
Pair Corralation between Bruce Fund and Putnam Global
Assuming the 90 days horizon Bruce Fund Bruce is expected to generate 0.76 times more return on investment than Putnam Global. However, Bruce Fund Bruce is 1.31 times less risky than Putnam Global. It trades about -0.06 of its potential returns per unit of risk. Putnam Global Health is currently generating about -0.27 per unit of risk. If you would invest 54,143 in Bruce Fund Bruce on August 28, 2024 and sell it today you would lose (405.00) from holding Bruce Fund Bruce or give up 0.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bruce Fund Bruce vs. Putnam Global Health
Performance |
| Timeline |
| Bruce Fund Bruce |
| Putnam Global Health |
Bruce Fund and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bruce Fund and Putnam Global
The main advantage of trading using opposite Bruce Fund and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bruce Fund 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.| Bruce Fund vs. Nuveen Winslow Large Cap | Bruce Fund vs. Aqr Large Cap | Bruce Fund vs. T Rowe Price | Bruce Fund vs. Morningstar Unconstrained Allocation |
| Putnam Global vs. Putnam Equity Income | Putnam Global vs. Putnam Tax Exempt | Putnam Global vs. Putnam Floating Rate | Putnam Global vs. Putnam High Yield |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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