Correlation Between Great-west Loomis and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Great-west Loomis 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 Great-west Loomis and Putnam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great West Loomis Sayles and Putnam Global Equity, you can compare the effects of market volatilities on Great-west Loomis 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 Great-west Loomis with a short position of Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great-west Loomis and Putnam Global.
Diversification Opportunities for Great-west Loomis and Putnam Global
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Great-west and Putnam is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Great West Loomis Sayles and Putnam Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Equity and Great-west Loomis 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 Great West Loomis Sayles 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 Equity has no effect on the direction of Great-west Loomis i.e., Great-west Loomis and Putnam Global go up and down completely randomly.
Pair Corralation between Great-west Loomis and Putnam Global
If you would invest 3,787 in Great West Loomis Sayles on September 2, 2024 and sell it today you would earn a total of 391.00 from holding Great West Loomis Sayles or generate 10.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great West Loomis Sayles vs. Putnam Global Equity
Performance |
| Timeline |
| Great West Loomis |
| Putnam Global Equity |
Great-west Loomis and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great-west Loomis and Putnam Global
The main advantage of trading using opposite Great-west Loomis and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great-west Loomis 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.| Great-west Loomis vs. Great West Securefoundation Balanced | Great-west Loomis vs. Great West Lifetime 2020 | Great-west Loomis vs. Great West Lifetime 2020 | Great-west Loomis vs. Great West Lifetime 2020 |
| Putnam Global vs. Putnam Equity Income | Putnam Global vs. Putnam Tax Exempt | Putnam Global vs. Putnam Floating Rate | Putnam Global 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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