Correlation Between Chase Growth and Putnam Short
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Putnam Short 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 Chase Growth and Putnam Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chase Growth Fund and Putnam Short Duration, you can compare the effects of market volatilities on Chase Growth and Putnam Short 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 Chase Growth with a short position of Putnam Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Putnam Short.
Diversification Opportunities for Chase Growth and Putnam Short
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chase and Putnam is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Putnam Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Short Duration and Chase Growth 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 Chase Growth Fund are associated (or correlated) with Putnam Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Short Duration has no effect on the direction of Chase Growth i.e., Chase Growth and Putnam Short go up and down completely randomly.
Pair Corralation between Chase Growth and Putnam Short
If you would invest 1,650 in Chase Growth Fund on September 3, 2024 and sell it today you would earn a total of 119.00 from holding Chase Growth Fund or generate 7.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chase Growth Fund vs. Putnam Short Duration
Performance |
| Timeline |
| Chase Growth |
| Putnam Short Duration |
Chase Growth and Putnam Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Putnam Short
The main advantage of trading using opposite Chase Growth and Putnam Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Putnam Short 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 Short will offset losses from the drop in Putnam Short's long position.| Chase Growth vs. The Chesapeake Growth | Chase Growth vs. Aston Montag Caldwell | Chase Growth vs. The Jensen Portfolio | Chase Growth vs. Cambiar Opportunity Fund |
| Putnam Short vs. Pimco Short Term Fund | Putnam Short vs. Short Term Fund Institutional | Putnam Short vs. Putnam Ultra Short | Putnam Short vs. Lord Abbett Ultra |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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