Correlation Between Ab Global and Putnam High
Can any of the company-specific risk be diversified away by investing in both Ab Global and Putnam High 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 Ab Global and Putnam High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Global Risk and Putnam High Yield, you can compare the effects of market volatilities on Ab Global and Putnam High 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 Ab Global with a short position of Putnam High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Putnam High.
Diversification Opportunities for Ab Global and Putnam High
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CBSYX and Putnam is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Risk and Putnam High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam High Yield and Ab Global 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 Ab Global Risk are associated (or correlated) with Putnam High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam High Yield has no effect on the direction of Ab Global i.e., Ab Global and Putnam High go up and down completely randomly.
Pair Corralation between Ab Global and Putnam High
Assuming the 90 days horizon Ab Global is expected to generate 1.18 times less return on investment than Putnam High. In addition to that, Ab Global is 1.81 times more volatile than Putnam High Yield. It trades about 0.06 of its total potential returns per unit of risk. Putnam High Yield is currently generating about 0.13 per unit of volatility. If you would invest 453.00 in Putnam High Yield on September 12, 2024 and sell it today you would earn a total of 90.00 from holding Putnam High Yield or generate 19.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global Risk vs. Putnam High Yield
Performance |
| Timeline |
| Ab Global Risk |
| Putnam High Yield |
Ab Global and Putnam High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Putnam High
The main advantage of trading using opposite Ab Global and Putnam High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global position performs unexpectedly, Putnam High 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 High will offset losses from the drop in Putnam High's long position.| Ab Global vs. Dodge Cox Stock | Ab Global vs. Qs Large Cap | Ab Global vs. Americafirst Large Cap | Ab Global vs. Jhancock Disciplined Value |
| Putnam High vs. Intal High Relative | Putnam High vs. Ab Global Risk | Putnam High vs. Needham Aggressive Growth | Putnam High vs. Ppm 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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