Correlation Between Growth Fund and Putnam Growth
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Putnam Growth 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 Growth Fund and Putnam Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Putnam Growth Opportunities, you can compare the effects of market volatilities on Growth Fund and Putnam Growth 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 Growth Fund with a short position of Putnam Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Putnam Growth.
Diversification Opportunities for Growth Fund and Putnam Growth
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Growth and Putnam is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Putnam Growth Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Growth Opport and Growth 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 Growth Fund Of are associated (or correlated) with Putnam Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Growth Opport has no effect on the direction of Growth Fund i.e., Growth Fund and Putnam Growth go up and down completely randomly.
Pair Corralation between Growth Fund and Putnam Growth
Assuming the 90 days horizon Growth Fund Of is expected to generate 0.88 times more return on investment than Putnam Growth. However, Growth Fund Of is 1.14 times less risky than Putnam Growth. It trades about 0.19 of its potential returns per unit of risk. Putnam Growth Opportunities is currently generating about 0.11 per unit of risk. If you would invest 7,734 in Growth Fund Of on August 28, 2024 and sell it today you would earn a total of 318.00 from holding Growth Fund Of or generate 4.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Fund Of vs. Putnam Growth Opportunities
Performance |
| Timeline |
| Growth Fund |
| Putnam Growth Opport |
Growth Fund and Putnam Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Putnam Growth
The main advantage of trading using opposite Growth Fund and Putnam Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Putnam Growth 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 Growth will offset losses from the drop in Putnam Growth's long position.| Growth Fund vs. Dodge Global Stock | Growth Fund vs. Scharf Global Opportunity | Growth Fund vs. Rbb Fund Trust | Growth Fund vs. Nuveen Global Real |
| Putnam Growth vs. George Putnam Fund | Putnam Growth vs. Putnam Dynamic Asset | Putnam Growth vs. Aquagold International | Putnam Growth vs. Morningstar Unconstrained Allocation |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |