Correlation Between Dimensional 2010 and Putnam Convertible
Can any of the company-specific risk be diversified away by investing in both Dimensional 2010 and Putnam Convertible 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 Dimensional 2010 and Putnam Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dimensional 2010 Target and Putnam Convertible Incm Gwth, you can compare the effects of market volatilities on Dimensional 2010 and Putnam Convertible 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 Dimensional 2010 with a short position of Putnam Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dimensional 2010 and Putnam Convertible.
Diversification Opportunities for Dimensional 2010 and Putnam Convertible
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dimensional and Putnam is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Dimensional 2010 Target and Putnam Convertible Incm Gwth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Convertible Incm and Dimensional 2010 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 Dimensional 2010 Target are associated (or correlated) with Putnam Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Convertible Incm has no effect on the direction of Dimensional 2010 i.e., Dimensional 2010 and Putnam Convertible go up and down completely randomly.
Pair Corralation between Dimensional 2010 and Putnam Convertible
Assuming the 90 days horizon Dimensional 2010 is expected to generate 6.23 times less return on investment than Putnam Convertible. But when comparing it to its historical volatility, Dimensional 2010 Target is 2.47 times less risky than Putnam Convertible. It trades about 0.14 of its potential returns per unit of risk. Putnam Convertible Incm Gwth is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 2,494 in Putnam Convertible Incm Gwth on August 28, 2024 and sell it today you would earn a total of 109.00 from holding Putnam Convertible Incm Gwth or generate 4.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dimensional 2010 Target vs. Putnam Convertible Incm Gwth
Performance |
| Timeline |
| Dimensional 2010 Target |
| Putnam Convertible Incm |
Dimensional 2010 and Putnam Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dimensional 2010 and Putnam Convertible
The main advantage of trading using opposite Dimensional 2010 and Putnam Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dimensional 2010 position performs unexpectedly, Putnam Convertible 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 Convertible will offset losses from the drop in Putnam Convertible's long position.| Dimensional 2010 vs. Intal High Relative | Dimensional 2010 vs. Dfa International | Dimensional 2010 vs. Dfa Inflation Protected | Dimensional 2010 vs. Dfa International Small |
| Putnam Convertible vs. Pia High Yield | Putnam Convertible vs. Pace High Yield | Putnam Convertible vs. Virtus High Yield | Putnam Convertible vs. American Century High |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |