Correlation Between Europac Gold and Putnam Short
Can any of the company-specific risk be diversified away by investing in both Europac Gold 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 Europac Gold and Putnam Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europac Gold Fund and Putnam Short Duration, you can compare the effects of market volatilities on Europac Gold 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 Europac Gold with a short position of Putnam Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europac Gold and Putnam Short.
Diversification Opportunities for Europac Gold and Putnam Short
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Europac and Putnam is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Europac Gold 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 Europac Gold 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 Europac Gold 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 Europac Gold i.e., Europac Gold and Putnam Short go up and down completely randomly.
Pair Corralation between Europac Gold and Putnam Short
Assuming the 90 days horizon Europac Gold Fund is expected to generate 17.45 times more return on investment than Putnam Short. However, Europac Gold is 17.45 times more volatile than Putnam Short Duration. It trades about 0.02 of its potential returns per unit of risk. Putnam Short Duration is currently generating about 0.22 per unit of risk. If you would invest 916.00 in Europac Gold Fund on September 12, 2024 and sell it today you would earn a total of 91.00 from holding Europac Gold Fund or generate 9.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Europac Gold Fund vs. Putnam Short Duration
Performance |
| Timeline |
| Europac Gold |
| Putnam Short Duration |
Europac Gold and Putnam Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europac Gold and Putnam Short
The main advantage of trading using opposite Europac Gold and Putnam Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europac Gold 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.| Europac Gold vs. Europac International Value | Europac Gold vs. Europac International Dividend | Europac Gold vs. Ep Emerging Markets | Europac Gold vs. Europac International Bond |
| Putnam Short vs. Gabelli Gold Fund | Putnam Short vs. Gold And Precious | Putnam Short vs. Europac Gold Fund | Putnam Short vs. Franklin Gold Precious |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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