Correlation Between Putnam Dynamic and Putnam Growth
Can any of the company-specific risk be diversified away by investing in both Putnam Dynamic and Putnam Growth 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 Putnam Dynamic and Putnam Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Dynamic Asset and Putnam Growth Opportunities, you can compare the effects of market volatilities on Putnam Dynamic and Putnam Growth 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 Putnam Dynamic with a short position of Putnam Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Dynamic and Putnam Growth.
Diversification Opportunities for Putnam Dynamic and Putnam Growth
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PUTNAM and Putnam is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Dynamic Asset and Putnam Growth Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Growth Opport and Putnam Dynamic 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 Putnam Dynamic Asset are associated (or correlated) with Putnam Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Growth Opport has no effect on the direction of Putnam Dynamic i.e., Putnam Dynamic and Putnam Growth go up and down completely randomly.
Pair Corralation between Putnam Dynamic and Putnam Growth
Assuming the 90 days horizon Putnam Dynamic Asset is expected to generate 0.54 times more return on investment than Putnam Growth. However, Putnam Dynamic Asset is 1.85 times less risky than Putnam Growth. It trades about 0.0 of its potential returns per unit of risk. Putnam Growth Opportunities is currently generating about -0.08 per unit of risk. If you would invest 2,024 in Putnam Dynamic Asset on November 28, 2024 and sell it today you would lose (1.00) from holding Putnam Dynamic Asset or give up 0.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Dynamic Asset vs. Putnam Growth Opportunities
Performance |
| Timeline |
| Putnam Dynamic Asset |
| Putnam Growth Opport |
Putnam Dynamic and Putnam Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Dynamic and Putnam Growth
The main advantage of trading using opposite Putnam Dynamic and Putnam Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Dynamic position performs unexpectedly, Putnam Growth 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 Growth will offset losses from the drop in Putnam Growth's long position.| Putnam Dynamic vs. T Rowe Price | Putnam Dynamic vs. Transamerica Funds | Putnam Dynamic vs. Tiaa Cref Funds | Putnam Dynamic vs. Franklin Government Money |
| Putnam Growth vs. Putnam Multi Cap Growth | Putnam Growth vs. Putnam International Equity | Putnam Growth vs. Putnam Equity Income | Putnam Growth vs. Putnam Dynamic Asset |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |