Correlation Between Putnam Retirement and Pimco All
Can any of the company-specific risk be diversified away by investing in both Putnam Retirement and Pimco All 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 Pimco All 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 Pimco All Asset, you can compare the effects of market volatilities on Putnam Retirement and Pimco All 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 Pimco All. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Retirement and Pimco All.
Diversification Opportunities for Putnam Retirement and Pimco All
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Putnam and Pimco is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Retirement Advantage and Pimco All Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco All Asset 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 Pimco All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco All Asset has no effect on the direction of Putnam Retirement i.e., Putnam Retirement and Pimco All go up and down completely randomly.
Pair Corralation between Putnam Retirement and Pimco All
Assuming the 90 days horizon Putnam Retirement is expected to generate 7.44 times less return on investment than Pimco All. In addition to that, Putnam Retirement is 2.52 times more volatile than Pimco All Asset. It trades about 0.01 of its total potential returns per unit of risk. Pimco All Asset is currently generating about 0.18 per unit of volatility. If you would invest 1,072 in Pimco All Asset on October 25, 2024 and sell it today you would earn a total of 12.00 from holding Pimco All Asset or generate 1.12% 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. Pimco All Asset
Performance |
| Timeline |
| Putnam Retirement |
| Pimco All Asset |
Putnam Retirement and Pimco All Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Retirement and Pimco All
The main advantage of trading using opposite Putnam Retirement and Pimco All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Retirement position performs unexpectedly, Pimco All 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 Pimco All will offset losses from the drop in Pimco All'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 |
| Pimco All vs. Blackstone Secured Lending | Pimco All vs. T Rowe Price | Pimco All vs. Pimco Capital Sec | Pimco All vs. T Rowe Price |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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