Correlation Between Dupont De and George Putnam
Can any of the company-specific risk be diversified away by investing in both Dupont De and George Putnam 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 Dupont De and George Putnam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dupont De Nemours and George Putnam Fund, you can compare the effects of market volatilities on Dupont De and George Putnam 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 Dupont De with a short position of George Putnam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and George Putnam.
Diversification Opportunities for Dupont De and George Putnam
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dupont and George is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and George Putnam Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on George Putnam and Dupont De 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 Dupont De Nemours are associated (or correlated) with George Putnam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of George Putnam has no effect on the direction of Dupont De i.e., Dupont De and George Putnam go up and down completely randomly.
Pair Corralation between Dupont De and George Putnam
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 2.7 times more return on investment than George Putnam. However, Dupont De is 2.7 times more volatile than George Putnam Fund. It trades about 0.04 of its potential returns per unit of risk. George Putnam Fund is currently generating about 0.11 per unit of risk. If you would invest 6,799 in Dupont De Nemours on September 1, 2024 and sell it today you would earn a total of 1,560 from holding Dupont De Nemours or generate 22.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. George Putnam Fund
Performance |
| Timeline |
| Dupont De Nemours |
| George Putnam |
Dupont De and George Putnam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and George Putnam
The main advantage of trading using opposite Dupont De and George Putnam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, George Putnam 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 George Putnam will offset losses from the drop in George Putnam's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide |
| George Putnam vs. Putnam Equity Income | George Putnam vs. Putnam Tax Exempt | George Putnam vs. Putnam Floating Rate | George Putnam 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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