Correlation Between Janus High and Putnam Dynamic
Can any of the company-specific risk be diversified away by investing in both Janus High and Putnam Dynamic 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 Janus High and Putnam Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus High Yield Fund and Putnam Dynamic Asset, you can compare the effects of market volatilities on Janus High and Putnam Dynamic 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 Janus High with a short position of Putnam Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus High and Putnam Dynamic.
Diversification Opportunities for Janus High and Putnam Dynamic
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Janus and Putnam is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Janus High Yield Fund and Putnam Dynamic Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Dynamic Asset and Janus High 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 Janus High Yield Fund are associated (or correlated) with Putnam Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Dynamic Asset has no effect on the direction of Janus High i.e., Janus High and Putnam Dynamic go up and down completely randomly.
Pair Corralation between Janus High and Putnam Dynamic
Assuming the 90 days horizon Janus High is expected to generate 2.79 times less return on investment than Putnam Dynamic. But when comparing it to its historical volatility, Janus High Yield Fund is 2.68 times less risky than Putnam Dynamic. It trades about 0.12 of its potential returns per unit of risk. Putnam Dynamic Asset is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,762 in Putnam Dynamic Asset on September 13, 2024 and sell it today you would earn a total of 40.00 from holding Putnam Dynamic Asset or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus High Yield Fund vs. Putnam Dynamic Asset
Performance |
| Timeline |
| Janus High Yield |
| Putnam Dynamic Asset |
Janus High and Putnam Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus High and Putnam Dynamic
The main advantage of trading using opposite Janus High and Putnam Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus High position performs unexpectedly, Putnam Dynamic 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 Dynamic will offset losses from the drop in Putnam Dynamic's long position.| Janus High vs. Columbia Income Opportunities | Janus High vs. Eaton Vance Floating Rate | Janus High vs. Aquagold International | Janus High vs. Morningstar Unconstrained Allocation |
| Putnam Dynamic vs. Alpine High Yield | Putnam Dynamic vs. Jpmorgan High Yield | Putnam Dynamic vs. Janus High Yield Fund | Putnam Dynamic vs. Guggenheim 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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