Correlation Between Monteagle Enhanced and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Monteagle Enhanced and Putnam Global 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 Monteagle Enhanced and Putnam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monteagle Enhanced Equity and Putnam Global Financials, you can compare the effects of market volatilities on Monteagle Enhanced and Putnam Global 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 Monteagle Enhanced with a short position of Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monteagle Enhanced and Putnam Global.
Diversification Opportunities for Monteagle Enhanced and Putnam Global
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Monteagle and Putnam is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Monteagle Enhanced Equity and Putnam Global Financials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Financials and Monteagle Enhanced 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 Monteagle Enhanced Equity are associated (or correlated) with Putnam Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Global Financials has no effect on the direction of Monteagle Enhanced i.e., Monteagle Enhanced and Putnam Global go up and down completely randomly.
Pair Corralation between Monteagle Enhanced and Putnam Global
Assuming the 90 days horizon Monteagle Enhanced Equity is expected to under-perform the Putnam Global. In addition to that, Monteagle Enhanced is 1.47 times more volatile than Putnam Global Financials. It trades about -0.11 of its total potential returns per unit of risk. Putnam Global Financials is currently generating about -0.06 per unit of volatility. If you would invest 1,071 in Putnam Global Financials on October 30, 2024 and sell it today you would lose (14.00) from holding Putnam Global Financials or give up 1.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monteagle Enhanced Equity vs. Putnam Global Financials
Performance |
| Timeline |
| Monteagle Enhanced Equity |
| Putnam Global Financials |
Monteagle Enhanced and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monteagle Enhanced and Putnam Global
The main advantage of trading using opposite Monteagle Enhanced and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monteagle Enhanced position performs unexpectedly, Putnam Global 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 Global will offset losses from the drop in Putnam Global's long position.| Monteagle Enhanced vs. Red Oak Technology | Monteagle Enhanced vs. Hennessy Technology Fund | Monteagle Enhanced vs. Firsthand Technology Opportunities | Monteagle Enhanced vs. Dreyfus Technology Growth |
| Putnam Global vs. Putnam Equity Income | Putnam Global vs. Putnam Tax Exempt | Putnam Global vs. Putnam Floating Rate | Putnam Global vs. Putnam Floating Rate |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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