Correlation Between Putnam Retirement and College Retirement
Can any of the company-specific risk be diversified away by investing in both Putnam Retirement and College Retirement 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 College Retirement 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 College Retirement Equities, you can compare the effects of market volatilities on Putnam Retirement and College Retirement 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 College Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Retirement and College Retirement.
Diversification Opportunities for Putnam Retirement and College Retirement
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Putnam and College is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Retirement Advantage and College Retirement Equities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on College Retirement 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 College Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of College Retirement has no effect on the direction of Putnam Retirement i.e., Putnam Retirement and College Retirement go up and down completely randomly.
Pair Corralation between Putnam Retirement and College Retirement
Assuming the 90 days horizon Putnam Retirement is expected to generate 3.78 times less return on investment than College Retirement. In addition to that, Putnam Retirement is 1.03 times more volatile than College Retirement Equities. It trades about 0.01 of its total potential returns per unit of risk. College Retirement Equities is currently generating about 0.05 per unit of volatility. If you would invest 34,055 in College Retirement Equities on October 19, 2024 and sell it today you would earn a total of 554.00 from holding College Retirement Equities or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Retirement Advantage vs. College Retirement Equities
Performance |
| Timeline |
| Putnam Retirement |
| College Retirement |
Putnam Retirement and College Retirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Retirement and College Retirement
The main advantage of trading using opposite Putnam Retirement and College Retirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Retirement position performs unexpectedly, College Retirement 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 College Retirement will offset losses from the drop in College Retirement's long position.| Putnam Retirement vs. Putnam Equity Income | Putnam Retirement vs. Putnam Tax Exempt | Putnam Retirement vs. Putnam Floating Rate | Putnam Retirement vs. Putnam High Yield |
| College Retirement vs. Vy Columbia Small | College Retirement vs. Needham Small Cap | College Retirement vs. Smallcap Fund Fka | College Retirement vs. Hunter Small Cap |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |