Correlation Between First Eagle and Putnam Floating
Can any of the company-specific risk be diversified away by investing in both First Eagle and Putnam Floating 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 First Eagle and Putnam Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Eagle Gold and Putnam Floating Rate, you can compare the effects of market volatilities on First Eagle and Putnam Floating 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 First Eagle with a short position of Putnam Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Putnam Floating.
Diversification Opportunities for First Eagle and Putnam Floating
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between FIRST and Putnam is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Putnam Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Floating Rate and First Eagle 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 First Eagle Gold are associated (or correlated) with Putnam Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Floating Rate has no effect on the direction of First Eagle i.e., First Eagle and Putnam Floating go up and down completely randomly.
Pair Corralation between First Eagle and Putnam Floating
Assuming the 90 days horizon First Eagle Gold is expected to under-perform the Putnam Floating. In addition to that, First Eagle is 41.29 times more volatile than Putnam Floating Rate. It trades about -0.12 of its total potential returns per unit of risk. Putnam Floating Rate is currently generating about 0.41 per unit of volatility. If you would invest 798.00 in Putnam Floating Rate on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Putnam Floating Rate or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Gold vs. Putnam Floating Rate
Performance |
| Timeline |
| First Eagle Gold |
| Putnam Floating Rate |
First Eagle and Putnam Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Putnam Floating
The main advantage of trading using opposite First Eagle and Putnam Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Putnam Floating 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 Floating will offset losses from the drop in Putnam Floating's long position.| First Eagle vs. First Eagle Gold | First Eagle vs. First Eagle Gold | First Eagle vs. Oppenheimer Gold Spec | First Eagle vs. Oppenheimer Gold Special |
| Putnam Floating vs. Invesco Gold Special | Putnam Floating vs. Goldman Sachs Clean | Putnam Floating vs. Great West Goldman Sachs | Putnam Floating vs. First Eagle Gold |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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