Correlation Between Putnam High and Guardian Fundamental
Can any of the company-specific risk be diversified away by investing in both Putnam High and Guardian Fundamental 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 Guardian Fundamental 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 Guardian Fundamental Global, you can compare the effects of market volatilities on Putnam High and Guardian Fundamental 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 Guardian Fundamental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam High and Guardian Fundamental.
Diversification Opportunities for Putnam High and Guardian Fundamental
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Putnam and Guardian is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Putnam High Income and Guardian Fundamental Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian Fundamental 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 Guardian Fundamental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardian Fundamental has no effect on the direction of Putnam High i.e., Putnam High and Guardian Fundamental go up and down completely randomly.
Pair Corralation between Putnam High and Guardian Fundamental
Considering the 90-day investment horizon Putnam High Income is expected to generate 0.81 times more return on investment than Guardian Fundamental. However, Putnam High Income is 1.24 times less risky than Guardian Fundamental. It trades about 0.25 of its potential returns per unit of risk. Guardian Fundamental Global is currently generating about 0.18 per unit of risk. If you would invest 664.00 in Putnam High Income on September 1, 2024 and sell it today you would earn a total of 17.00 from holding Putnam High Income or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Putnam High Income vs. Guardian Fundamental Global
Performance |
| Timeline |
| Putnam High Income |
| Guardian Fundamental |
Putnam High and Guardian Fundamental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam High and Guardian Fundamental
The main advantage of trading using opposite Putnam High and Guardian Fundamental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam High position performs unexpectedly, Guardian Fundamental 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 Guardian Fundamental will offset losses from the drop in Guardian Fundamental'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 |
| Guardian Fundamental vs. Guardian Dividend Growth | Guardian Fundamental vs. Equity Growth Fund | Guardian Fundamental vs. Putnam High Income | Guardian Fundamental vs. Fidelity Advisor Technology |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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