Correlation Between Putnam High and Eagle Mid
Can any of the company-specific risk be diversified away by investing in both Putnam High and Eagle Mid 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 Eagle Mid 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 Eagle Mid Cap, you can compare the effects of market volatilities on Putnam High and Eagle Mid 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 Eagle Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam High and Eagle Mid.
Diversification Opportunities for Putnam High and Eagle Mid
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Putnam and Eagle is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Putnam High Income and Eagle Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mid Cap 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 Eagle Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mid Cap has no effect on the direction of Putnam High i.e., Putnam High and Eagle Mid go up and down completely randomly.
Pair Corralation between Putnam High and Eagle Mid
If you would invest 675.00 in Putnam High Income on September 12, 2024 and sell it today you would earn a total of 10.00 from holding Putnam High Income or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Putnam High Income vs. Eagle Mid Cap
Performance |
| Timeline |
| Putnam High Income |
| Eagle Mid Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Putnam High and Eagle Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam High and Eagle Mid
The main advantage of trading using opposite Putnam High and Eagle Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam High position performs unexpectedly, Eagle Mid 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 Eagle Mid will offset losses from the drop in Eagle Mid's long position.| Putnam High vs. Oxford Lane Capital | Putnam High vs. Orchid Island Capital | Putnam High vs. Guggenheim Strategic Opportunities | Putnam High vs. Stone Harbor Emerging |
| Eagle Mid vs. Blackrock Sm Cap | Eagle Mid vs. Small Cap Stock | Eagle Mid vs. Oppenheimer International Diversified | Eagle Mid vs. Davenport 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |