Correlation Between Kinetics Global and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Kinetics Global 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 Kinetics Global and Putnam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinetics Global Fund and Putnam Global Industrials, you can compare the effects of market volatilities on Kinetics Global 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 Kinetics Global with a short position of Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and Putnam Global.
Diversification Opportunities for Kinetics Global and Putnam Global
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinetics and Putnam is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund and Putnam Global Industrials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Industrials and Kinetics Global 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 Kinetics Global Fund 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 Industrials has no effect on the direction of Kinetics Global i.e., Kinetics Global and Putnam Global go up and down completely randomly.
Pair Corralation between Kinetics Global and Putnam Global
Assuming the 90 days horizon Kinetics Global Fund is expected to generate 0.91 times more return on investment than Putnam Global. However, Kinetics Global Fund is 1.1 times less risky than Putnam Global. It trades about 0.02 of its potential returns per unit of risk. Putnam Global Industrials is currently generating about -0.16 per unit of risk. If you would invest 1,536 in Kinetics Global Fund on September 13, 2024 and sell it today you would earn a total of 8.00 from holding Kinetics Global Fund or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Global Fund vs. Putnam Global Industrials
Performance |
| Timeline |
| Kinetics Global |
| Putnam Global Industrials |
Kinetics Global and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Global and Putnam Global
The main advantage of trading using opposite Kinetics Global and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Global 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.| Kinetics Global vs. Lord Abbett Short | Kinetics Global vs. Easterly Snow Longshort | Kinetics Global vs. Boston Partners Longshort | Kinetics Global vs. Blackrock Short Term Inflat Protected |
| Putnam Global vs. Putnam Growth Opportunities | Putnam Global vs. Putnam International Equity | Putnam Global vs. George Putnam Fund | Putnam Global vs. Putnam Global Health |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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