Correlation Between Putnam Retirement and The Hartford
Can any of the company-specific risk be diversified away by investing in both Putnam Retirement and The Hartford 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 Retirement and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Retirement Advantage and The Hartford Balanced, you can compare the effects of market volatilities on Putnam Retirement and The Hartford 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 Retirement with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Retirement and The Hartford.
Diversification Opportunities for Putnam Retirement and The Hartford
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Putnam and The is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Retirement Advantage and The Hartford Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Balanced and Putnam Retirement 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 Retirement Advantage are associated (or correlated) with The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Balanced has no effect on the direction of Putnam Retirement i.e., Putnam Retirement and The Hartford go up and down completely randomly.
Pair Corralation between Putnam Retirement and The Hartford
Assuming the 90 days horizon Putnam Retirement is expected to generate 7.71 times less return on investment than The Hartford. In addition to that, Putnam Retirement is 2.67 times more volatile than The Hartford Balanced. It trades about 0.01 of its total potential returns per unit of risk. The Hartford Balanced is currently generating about 0.19 per unit of volatility. If you would invest 1,893 in The Hartford Balanced on October 25, 2024 and sell it today you would earn a total of 22.00 from holding The Hartford Balanced or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Retirement Advantage vs. The Hartford Balanced
Performance |
| Timeline |
| Putnam Retirement |
| Hartford Balanced |
Putnam Retirement and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Retirement and The Hartford
The main advantage of trading using opposite Putnam Retirement and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Retirement position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Putnam Retirement vs. Fidelity Freedom Index | Putnam Retirement vs. Fidelity Freedom 2060 | Putnam Retirement vs. HUMANA INC | Putnam Retirement vs. Aquagold International |
| The Hartford vs. Tiaa Cref Inflation Linked Bond | The Hartford vs. Simt Multi Asset Inflation | The Hartford vs. Atac Inflation Rotation | The Hartford vs. Inflation Protected Bond Fund |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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