Correlation Between Issachar Fund and Putnam Multi
Can any of the company-specific risk be diversified away by investing in both Issachar Fund 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 Issachar Fund and Putnam Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Issachar Fund Class and Putnam Multi Cap Growth, you can compare the effects of market volatilities on Issachar Fund 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 Issachar Fund with a short position of Putnam Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Issachar Fund and Putnam Multi.
Diversification Opportunities for Issachar Fund and Putnam Multi
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Issachar and Putnam is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Issachar Fund Class 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 Issachar Fund 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 Issachar Fund Class 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 Issachar Fund i.e., Issachar Fund and Putnam Multi go up and down completely randomly.
Pair Corralation between Issachar Fund and Putnam Multi
Assuming the 90 days horizon Issachar Fund Class is expected to generate 1.41 times more return on investment than Putnam Multi. However, Issachar Fund is 1.41 times more volatile than Putnam Multi Cap Growth. It trades about 0.38 of its potential returns per unit of risk. Putnam Multi Cap Growth is currently generating about 0.34 per unit of risk. If you would invest 980.00 in Issachar Fund Class on September 2, 2024 and sell it today you would earn a total of 77.00 from holding Issachar Fund Class or generate 7.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Issachar Fund Class vs. Putnam Multi Cap Growth
Performance |
| Timeline |
| Issachar Fund Class |
| Putnam Multi Cap |
Issachar Fund and Putnam Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Issachar Fund and Putnam Multi
The main advantage of trading using opposite Issachar Fund and Putnam Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Issachar Fund 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.| Issachar Fund vs. Chestnut Street Exchange | Issachar Fund vs. Pimco Funds | Issachar Fund vs. Legg Mason Partners | Issachar Fund vs. Transamerica Funds |
| Putnam Multi vs. Putnam Equity Income | Putnam Multi vs. Putnam Tax Exempt | Putnam Multi vs. Putnam Floating Rate | Putnam Multi 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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