Correlation Between Fuller Thaler and Putnam Equity
Can any of the company-specific risk be diversified away by investing in both Fuller Thaler and Putnam Equity 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 Fuller Thaler and Putnam Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fuller Thaler Behavioral and Putnam Equity Income, you can compare the effects of market volatilities on Fuller Thaler and Putnam Equity 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 Fuller Thaler with a short position of Putnam Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuller Thaler and Putnam Equity.
Diversification Opportunities for Fuller Thaler and Putnam Equity
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fuller and Putnam is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Fuller Thaler Behavioral and Putnam Equity Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Equity Income and Fuller Thaler 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 Fuller Thaler Behavioral are associated (or correlated) with Putnam Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Equity Income has no effect on the direction of Fuller Thaler i.e., Fuller Thaler and Putnam Equity go up and down completely randomly.
Pair Corralation between Fuller Thaler and Putnam Equity
Assuming the 90 days horizon Fuller Thaler Behavioral is expected to generate 1.83 times more return on investment than Putnam Equity. However, Fuller Thaler is 1.83 times more volatile than Putnam Equity Income. It trades about 0.09 of its potential returns per unit of risk. Putnam Equity Income is currently generating about 0.1 per unit of risk. If you would invest 2,986 in Fuller Thaler Behavioral on September 1, 2024 and sell it today you would earn a total of 1,805 from holding Fuller Thaler Behavioral or generate 60.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.78% |
| Values | Daily Returns |
Fuller Thaler Behavioral vs. Putnam Equity Income
Performance |
| Timeline |
| Fuller Thaler Behavioral |
| Putnam Equity Income |
Fuller Thaler and Putnam Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuller Thaler and Putnam Equity
The main advantage of trading using opposite Fuller Thaler and Putnam Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuller Thaler position performs unexpectedly, Putnam Equity 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 Equity will offset losses from the drop in Putnam Equity's long position.| Fuller Thaler vs. Aqr Diversified Arbitrage | Fuller Thaler vs. Blackrock Conservative Prprdptfinstttnl | Fuller Thaler vs. Pioneer Diversified High | Fuller Thaler vs. Delaware Limited Term Diversified |
| Putnam Equity vs. Putnam Growth Opportunities | Putnam Equity vs. Putnam International Equity | Putnam Equity vs. George Putnam Fund | Putnam Equity vs. Putnam Multi Cap Growth |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |