Correlation Between Putnam High and Eip Growth
Can any of the company-specific risk be diversified away by investing in both Putnam High and Eip 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 High and Eip Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam High Income and Eip Growth And, you can compare the effects of market volatilities on Putnam High and Eip 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 High with a short position of Eip Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam High and Eip Growth.
Diversification Opportunities for Putnam High and Eip Growth
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Putnam and Eip is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Putnam High Income and Eip Growth And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eip Growth And and Putnam High 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 High Income are associated (or correlated) with Eip Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eip Growth And has no effect on the direction of Putnam High i.e., Putnam High and Eip Growth go up and down completely randomly.
Pair Corralation between Putnam High and Eip Growth
Considering the 90-day investment horizon Putnam High is expected to generate 4.37 times less return on investment than Eip Growth. But when comparing it to its historical volatility, Putnam High Income is 1.83 times less risky than Eip Growth. It trades about 0.22 of its potential returns per unit of risk. Eip Growth And is currently generating about 0.53 of returns per unit of risk over similar time horizon. If you would invest 1,808 in Eip Growth And on August 31, 2024 and sell it today you would earn a total of 186.00 from holding Eip Growth And or generate 10.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam High Income vs. Eip Growth And
Performance |
| Timeline |
| Putnam High Income |
| Eip Growth And |
Putnam High and Eip Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam High and Eip Growth
The main advantage of trading using opposite Putnam High and Eip Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam High position performs unexpectedly, Eip 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 Eip Growth will offset losses from the drop in Eip Growth's long position.| Putnam High vs. RiverNorthDoubleLine Strategic Opportunity | Putnam High vs. Cornerstone Strategic Return | Putnam High vs. Oxford Lane Capital | Putnam High vs. Horizon Technology Finance |
| Eip Growth vs. Columbia Seligman Global | Eip Growth vs. Jpmorgan Large Cap | Eip Growth vs. Virtus Select Mlp | Eip Growth vs. Oil Gas Ultrasector |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |