Correlation Between Multisector Bond and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Multisector Bond 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 Multisector Bond and Putnam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multisector Bond Sma and Putnam Global Income, you can compare the effects of market volatilities on Multisector Bond 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 Multisector Bond with a short position of Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multisector Bond and Putnam Global.
Diversification Opportunities for Multisector Bond and Putnam Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Multisector and Putnam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Multisector Bond Sma and Putnam Global Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Income and Multisector Bond 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 Multisector Bond Sma 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 Income has no effect on the direction of Multisector Bond i.e., Multisector Bond and Putnam Global go up and down completely randomly.
Pair Corralation between Multisector Bond and Putnam Global
Assuming the 90 days horizon Multisector Bond Sma is expected to generate 1.48 times more return on investment than Putnam Global. However, Multisector Bond is 1.48 times more volatile than Putnam Global Income. It trades about 0.1 of its potential returns per unit of risk. Putnam Global Income is currently generating about 0.04 per unit of risk. If you would invest 1,104 in Multisector Bond Sma on September 12, 2024 and sell it today you would earn a total of 272.00 from holding Multisector Bond Sma or generate 24.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multisector Bond Sma vs. Putnam Global Income
Performance |
| Timeline |
| Multisector Bond Sma |
| Putnam Global Income |
Multisector Bond and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multisector Bond and Putnam Global
The main advantage of trading using opposite Multisector Bond and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multisector Bond 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.| Multisector Bond vs. SCOR PK | Multisector Bond vs. Morningstar Unconstrained Allocation | Multisector Bond vs. Thrivent High Yield | Multisector Bond vs. Via Renewables |
| Putnam Global vs. Doubleline Yield Opportunities | Putnam Global vs. Artisan High Income | Putnam Global vs. T Rowe Price | Putnam Global vs. Multisector Bond Sma |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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