Correlation Between Calvert Global and Putnam International
Can any of the company-specific risk be diversified away by investing in both Calvert Global and Putnam International 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 Calvert Global and Putnam International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Global Energy and Putnam International Equity, you can compare the effects of market volatilities on Calvert Global and Putnam International 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 Calvert Global with a short position of Putnam International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Putnam International.
Diversification Opportunities for Calvert Global and Putnam International
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calvert and Putnam is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Putnam International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam International and Calvert 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 Calvert Global Energy are associated (or correlated) with Putnam International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam International has no effect on the direction of Calvert Global i.e., Calvert Global and Putnam International go up and down completely randomly.
Pair Corralation between Calvert Global and Putnam International
Assuming the 90 days horizon Calvert Global is expected to generate 1.62 times less return on investment than Putnam International. But when comparing it to its historical volatility, Calvert Global Energy is 1.13 times less risky than Putnam International. It trades about 0.12 of its potential returns per unit of risk. Putnam International Equity is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,707 in Putnam International Equity on September 13, 2024 and sell it today you would earn a total of 61.00 from holding Putnam International Equity or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Global Energy vs. Putnam International Equity
Performance |
| Timeline |
| Calvert Global Energy |
| Putnam International |
Calvert Global and Putnam International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Global and Putnam International
The main advantage of trading using opposite Calvert Global and Putnam International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global position performs unexpectedly, Putnam International 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 International will offset losses from the drop in Putnam International's long position.| Calvert Global vs. Ab Global Risk | Calvert Global vs. Lgm Risk Managed | Calvert Global vs. Western Asset High | Calvert Global vs. Ab Global Risk |
| Putnam International vs. SCOR PK | Putnam International vs. Morningstar Unconstrained Allocation | Putnam International vs. Via Renewables | Putnam International vs. Bondbloxx ETF Trust |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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