Correlation Between James Balanced: and George Putnam
Can any of the company-specific risk be diversified away by investing in both James Balanced: and George Putnam 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 James Balanced: and George Putnam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between James Balanced Golden and George Putnam Fund, you can compare the effects of market volatilities on James Balanced: and George Putnam 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 James Balanced: with a short position of George Putnam. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced: and George Putnam.
Diversification Opportunities for James Balanced: and George Putnam
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between James and GEORGE is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and George Putnam Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on George Putnam and James Balanced: 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 James Balanced Golden are associated (or correlated) with George Putnam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of George Putnam has no effect on the direction of James Balanced: i.e., James Balanced: and George Putnam go up and down completely randomly.
Pair Corralation between James Balanced: and George Putnam
Assuming the 90 days horizon James Balanced Golden is expected to generate 0.74 times more return on investment than George Putnam. However, James Balanced Golden is 1.36 times less risky than George Putnam. It trades about 0.13 of its potential returns per unit of risk. George Putnam Fund is currently generating about 0.08 per unit of risk. If you would invest 2,158 in James Balanced Golden on September 1, 2024 and sell it today you would earn a total of 170.00 from holding James Balanced Golden or generate 7.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
James Balanced Golden vs. George Putnam Fund
Performance |
| Timeline |
| James Balanced Golden |
| George Putnam |
James Balanced: and George Putnam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced: and George Putnam
The main advantage of trading using opposite James Balanced: and George Putnam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced: position performs unexpectedly, George Putnam 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 George Putnam will offset losses from the drop in George Putnam's long position.| James Balanced: vs. Permanent Portfolio Class | James Balanced: vs. Berwyn Income Fund | James Balanced: vs. Fpa Crescent Fund | James Balanced: vs. Aquagold International |
| George Putnam vs. Ab All Market | George Putnam vs. Vanguard Developed Markets | George Putnam vs. Locorr Market Trend | George Putnam vs. Calvert Developed Market |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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