Correlation Between Intel and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Intel 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 Intel and Putnam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Putnam Global Health, you can compare the effects of market volatilities on Intel 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 Intel with a short position of Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Putnam Global.
Diversification Opportunities for Intel and Putnam Global
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intel and Putnam is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Putnam Global Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Health and Intel 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 Intel 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 Health has no effect on the direction of Intel i.e., Intel and Putnam Global go up and down completely randomly.
Pair Corralation between Intel and Putnam Global
Given the investment horizon of 90 days Intel is expected to generate 4.45 times more return on investment than Putnam Global. However, Intel is 4.45 times more volatile than Putnam Global Health. It trades about 0.13 of its potential returns per unit of risk. Putnam Global Health is currently generating about -0.27 per unit of risk. If you would invest 2,292 in Intel on August 28, 2024 and sell it today you would earn a total of 195.00 from holding Intel or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Putnam Global Health
Performance |
| Timeline |
| Intel |
| Putnam Global Health |
Intel and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Putnam Global
The main advantage of trading using opposite Intel and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel 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.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
| Putnam Global vs. Putnam Equity Income | Putnam Global vs. Putnam Tax Exempt | Putnam Global vs. Putnam Floating Rate | Putnam Global 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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