Correlation Between Goldman Sachs and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Putnam Global 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 Goldman Sachs and Putnam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Inflation and Putnam Global Incm, you can compare the effects of market volatilities on Goldman Sachs and Putnam Global 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 Goldman Sachs with a short position of Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Putnam Global.
Diversification Opportunities for Goldman Sachs and Putnam Global
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Goldman and Putnam is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Inflation and Putnam Global Incm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Incm and Goldman Sachs 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 Goldman Sachs Inflation are associated (or correlated) with Putnam Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Global Incm has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Putnam Global go up and down completely randomly.
Pair Corralation between Goldman Sachs and Putnam Global
Assuming the 90 days horizon Goldman Sachs Inflation is expected to generate 1.17 times more return on investment than Putnam Global. However, Goldman Sachs is 1.17 times more volatile than Putnam Global Incm. It trades about -0.08 of its potential returns per unit of risk. Putnam Global Incm is currently generating about -0.11 per unit of risk. If you would invest 973.00 in Goldman Sachs Inflation on September 13, 2024 and sell it today you would lose (13.00) from holding Goldman Sachs Inflation or give up 1.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Inflation vs. Putnam Global Incm
Performance |
| Timeline |
| Goldman Sachs Inflation |
| Putnam Global Incm |
Goldman Sachs and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Putnam Global
The main advantage of trading using opposite Goldman Sachs and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Putnam Global 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 Global will offset losses from the drop in Putnam Global's long position.| Goldman Sachs vs. Advent Claymore Convertible | Goldman Sachs vs. Allianzgi Convertible Income | Goldman Sachs vs. Putnam Convertible Incm Gwth | Goldman Sachs vs. Rationalpier 88 Convertible |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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