Correlation Between Invesco Global and Putnam Multicap
Can any of the company-specific risk be diversified away by investing in both Invesco Global and Putnam Multicap 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 Invesco Global and Putnam Multicap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Global Health and Putnam Multicap Core, you can compare the effects of market volatilities on Invesco Global and Putnam Multicap 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 Invesco Global with a short position of Putnam Multicap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Global and Putnam Multicap.
Diversification Opportunities for Invesco Global and Putnam Multicap
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Invesco and Putnam is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Global Health and Putnam Multicap Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Multicap Core and Invesco Global 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 Invesco Global Health are associated (or correlated) with Putnam Multicap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Multicap Core has no effect on the direction of Invesco Global i.e., Invesco Global and Putnam Multicap go up and down completely randomly.
Pair Corralation between Invesco Global and Putnam Multicap
If you would invest (100.00) in Invesco Global Health on January 12, 2025 and sell it today you would earn a total of 100.00 from holding Invesco Global Health or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Invesco Global Health vs. Putnam Multicap Core
Performance |
| Timeline |
| Invesco Global Health |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Putnam Multicap Core |
Invesco Global and Putnam Multicap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Global and Putnam Multicap
The main advantage of trading using opposite Invesco Global and Putnam Multicap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Global position performs unexpectedly, Putnam Multicap 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 Multicap will offset losses from the drop in Putnam Multicap's long position.| Invesco Global vs. Summit Global Investments | Invesco Global vs. Rational Dividend Capture | Invesco Global vs. Qs Growth Fund | Invesco Global vs. Rbb Fund |
| Putnam Multicap vs. Putnam Equity Income | Putnam Multicap vs. Putnam Tax Exempt | Putnam Multicap vs. Putnam Floating Rate | Putnam Multicap vs. Putnam High Yield |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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