Correlation Between Guidepath(r) Managed and Putnam Equity
Can any of the company-specific risk be diversified away by investing in both Guidepath(r) Managed 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 Guidepath(r) Managed and Putnam Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidepath Managed Futures and Putnam Equity Income, you can compare the effects of market volatilities on Guidepath(r) Managed 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 Guidepath(r) Managed with a short position of Putnam Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidepath(r) Managed and Putnam Equity.
Diversification Opportunities for Guidepath(r) Managed and Putnam Equity
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guidepath(r) and Putnam is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Guidepath Managed Futures 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 Guidepath(r) Managed 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 Guidepath Managed Futures 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 Guidepath(r) Managed i.e., Guidepath(r) Managed and Putnam Equity go up and down completely randomly.
Pair Corralation between Guidepath(r) Managed and Putnam Equity
Assuming the 90 days horizon Guidepath Managed Futures is expected to under-perform the Putnam Equity. But the mutual fund apears to be less risky and, when comparing its historical volatility, Guidepath Managed Futures is 1.07 times less risky than Putnam Equity. The mutual fund trades about -0.11 of its potential returns per unit of risk. The Putnam Equity Income is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,661 in Putnam Equity Income on August 25, 2024 and sell it today you would earn a total of 146.00 from holding Putnam Equity Income or generate 3.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guidepath Managed Futures vs. Putnam Equity Income
Performance |
| Timeline |
| Guidepath Managed Futures |
| Putnam Equity Income |
Guidepath(r) Managed and Putnam Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidepath(r) Managed and Putnam Equity
The main advantage of trading using opposite Guidepath(r) Managed and Putnam Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidepath(r) Managed 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.| Guidepath(r) Managed vs. Federated Mdt Large | Guidepath(r) Managed vs. Aqr Large Cap | Guidepath(r) Managed vs. Alternative Asset Allocation | Guidepath(r) Managed vs. Morningstar Unconstrained Allocation |
| Putnam Equity vs. Guidepath Managed Futures | Putnam Equity vs. Blackrock Inflation Protected | Putnam Equity vs. Ab Bond Inflation | Putnam Equity vs. Lord Abbett Inflation |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |