Correlation Between Putman Absolute and Gmo Global
Can any of the company-specific risk be diversified away by investing in both Putman Absolute and Gmo Global 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 Putman Absolute and Gmo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putman Absolute Return and Gmo Global Equity, you can compare the effects of market volatilities on Putman Absolute and Gmo Global 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 Putman Absolute with a short position of Gmo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putman Absolute and Gmo Global.
Diversification Opportunities for Putman Absolute and Gmo Global
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Putman and Gmo is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Putman Absolute Return and Gmo Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gmo Global Equity and Putman Absolute 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 Putman Absolute Return are associated (or correlated) with Gmo Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gmo Global Equity has no effect on the direction of Putman Absolute i.e., Putman Absolute and Gmo Global go up and down completely randomly.
Pair Corralation between Putman Absolute and Gmo Global
If you would invest 2,968 in Gmo Global Equity on September 12, 2024 and sell it today you would earn a total of 61.00 from holding Gmo Global Equity or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Putman Absolute Return vs. Gmo Global Equity
Performance |
| Timeline |
| Putman Absolute Return |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gmo Global Equity |
Putman Absolute and Gmo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putman Absolute and Gmo Global
The main advantage of trading using opposite Putman Absolute and Gmo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putman Absolute position performs unexpectedly, Gmo Global 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 Gmo Global will offset losses from the drop in Gmo Global's long position.| Putman Absolute vs. Qs Defensive Growth | Putman Absolute vs. Mid Cap Growth | Putman Absolute vs. Eip Growth And | Putman Absolute vs. Franklin Growth Opportunities |
| Gmo Global vs. Gmo E Plus | Gmo Global vs. Gmo Trust | Gmo Global vs. Gmo Treasury Fund | Gmo Global vs. Gmo Trust |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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