Correlation Between Harding Loevner and Putnam Money
Can any of the company-specific risk be diversified away by investing in both Harding Loevner and Putnam Money 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 Harding Loevner and Putnam Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harding Loevner Global and Putnam Money Market, you can compare the effects of market volatilities on Harding Loevner and Putnam Money 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 Harding Loevner with a short position of Putnam Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harding Loevner and Putnam Money.
Diversification Opportunities for Harding Loevner and Putnam Money
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Harding and Putnam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Harding Loevner Global and Putnam Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Money Market and Harding Loevner 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 Harding Loevner Global are associated (or correlated) with Putnam Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Money Market has no effect on the direction of Harding Loevner i.e., Harding Loevner and Putnam Money go up and down completely randomly.
Pair Corralation between Harding Loevner and Putnam Money
Assuming the 90 days horizon Harding Loevner Global is expected to generate 1.3 times more return on investment than Putnam Money. However, Harding Loevner is 1.3 times more volatile than Putnam Money Market. It trades about 0.06 of its potential returns per unit of risk. Putnam Money Market is currently generating about 0.03 per unit of risk. If you would invest 2,636 in Harding Loevner Global on October 16, 2024 and sell it today you would earn a total of 728.00 from holding Harding Loevner Global or generate 27.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Harding Loevner Global vs. Putnam Money Market
Performance |
| Timeline |
| Harding Loevner Global |
| Putnam Money Market |
Harding Loevner and Putnam Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harding Loevner and Putnam Money
The main advantage of trading using opposite Harding Loevner and Putnam Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harding Loevner position performs unexpectedly, Putnam Money 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 Money will offset losses from the drop in Putnam Money's long position.| Harding Loevner vs. Calvert Developed Market | Harding Loevner vs. Inverse Emerging Markets | Harding Loevner vs. Kinetics Market Opportunities | Harding Loevner vs. Franklin Emerging Market |
| Putnam Money vs. Harding Loevner Global | Putnam Money vs. Us Global Investors | Putnam Money vs. Qs Global Equity | Putnam Money vs. Rbc Global Equity |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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