Correlation Between Jhancock Diversified and Putnam Multi
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified and Putnam Multi 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 Jhancock Diversified and Putnam Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Diversified Macro and Putnam Multi Cap Growth, you can compare the effects of market volatilities on Jhancock Diversified and Putnam Multi 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 Jhancock Diversified with a short position of Putnam Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Putnam Multi.
Diversification Opportunities for Jhancock Diversified and Putnam Multi
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jhancock and Putnam is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Putnam Multi Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Multi Cap and Jhancock Diversified 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 Jhancock Diversified Macro are associated (or correlated) with Putnam Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Multi Cap has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and Putnam Multi go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Putnam Multi
Assuming the 90 days horizon Jhancock Diversified Macro is expected to generate 0.5 times more return on investment than Putnam Multi. However, Jhancock Diversified Macro is 2.01 times less risky than Putnam Multi. It trades about 0.37 of its potential returns per unit of risk. Putnam Multi Cap Growth is currently generating about 0.11 per unit of risk. If you would invest 902.00 in Jhancock Diversified Macro on October 24, 2024 and sell it today you would earn a total of 28.00 from holding Jhancock Diversified Macro or generate 3.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Diversified Macro vs. Putnam Multi Cap Growth
Performance |
| Timeline |
| Jhancock Diversified |
| Putnam Multi Cap |
Jhancock Diversified and Putnam Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Putnam Multi
The main advantage of trading using opposite Jhancock Diversified and Putnam Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified position performs unexpectedly, Putnam Multi 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 Multi will offset losses from the drop in Putnam Multi's long position.| Jhancock Diversified vs. L Abbett Growth | Jhancock Diversified vs. Glg Intl Small | Jhancock Diversified vs. Franklin Small Cap | Jhancock Diversified vs. Vy Columbia Small |
| Putnam Multi vs. Vanguard Emerging Markets | Putnam Multi vs. Bbh Trust | Putnam Multi vs. Jhancock Diversified Macro | Putnam Multi vs. Segall Bryant Hamill |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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