Correlation Between Eaton Vance and Putnam Dynamic
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Putnam Dynamic 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 Eaton Vance and Putnam Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Tax and Putnam Dynamic Asset, you can compare the effects of market volatilities on Eaton Vance and Putnam Dynamic 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 Eaton Vance with a short position of Putnam Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Putnam Dynamic.
Diversification Opportunities for Eaton Vance and Putnam Dynamic
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eaton and PUTNAM is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Tax and Putnam Dynamic Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Dynamic Asset and Eaton Vance 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 Eaton Vance Tax are associated (or correlated) with Putnam Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Dynamic Asset has no effect on the direction of Eaton Vance i.e., Eaton Vance and Putnam Dynamic go up and down completely randomly.
Pair Corralation between Eaton Vance and Putnam Dynamic
Considering the 90-day investment horizon Eaton Vance Tax is expected to generate 1.0 times more return on investment than Putnam Dynamic. However, Eaton Vance is 1.0 times more volatile than Putnam Dynamic Asset. It trades about 0.07 of its potential returns per unit of risk. Putnam Dynamic Asset is currently generating about 0.07 per unit of risk. If you would invest 1,089 in Eaton Vance Tax on November 27, 2024 and sell it today you would earn a total of 341.00 from holding Eaton Vance Tax or generate 31.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Tax vs. Putnam Dynamic Asset
Performance |
| Timeline |
| Eaton Vance Tax |
| Putnam Dynamic Asset |
Eaton Vance and Putnam Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Putnam Dynamic
The main advantage of trading using opposite Eaton Vance and Putnam Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Putnam Dynamic 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 Dynamic will offset losses from the drop in Putnam Dynamic's long position.| Eaton Vance vs. Eaton Vance Tax Managed | Eaton Vance vs. Eaton Vance Tax | Eaton Vance vs. Eaton Vance Risk | Eaton Vance vs. Eaton Vance Tax |
| Putnam Dynamic vs. Invesco Vertible Securities | Putnam Dynamic vs. Teton Vertible Securities | Putnam Dynamic vs. Calamos Vertible Fund | Putnam Dynamic vs. Victory Incore Investment |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |