Correlation Between Putnam Equity and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Putnam Equity and Eaton Vance 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 Equity and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Equity Income and Eaton Vance Small Cap, you can compare the effects of market volatilities on Putnam Equity and Eaton Vance 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 Equity with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Equity and Eaton Vance.
Diversification Opportunities for Putnam Equity and Eaton Vance
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Putnam and Eaton is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Equity Income and Eaton Vance Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Small and Putnam Equity 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 Equity Income are associated (or correlated) with Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Small has no effect on the direction of Putnam Equity i.e., Putnam Equity and Eaton Vance go up and down completely randomly.
Pair Corralation between Putnam Equity and Eaton Vance
Assuming the 90 days horizon Putnam Equity Income is expected to generate 0.65 times more return on investment than Eaton Vance. However, Putnam Equity Income is 1.55 times less risky than Eaton Vance. It trades about 0.15 of its potential returns per unit of risk. Eaton Vance Small Cap is currently generating about 0.08 per unit of risk. If you would invest 3,253 in Putnam Equity Income on September 1, 2024 and sell it today you would earn a total of 641.00 from holding Putnam Equity Income or generate 19.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Equity Income vs. Eaton Vance Small Cap
Performance |
| Timeline |
| Putnam Equity Income |
| Eaton Vance Small |
Putnam Equity and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Equity and Eaton Vance
The main advantage of trading using opposite Putnam Equity and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Equity position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| Putnam Equity vs. Putnam Growth Opportunities | Putnam Equity vs. Putnam International Equity | Putnam Equity vs. George Putnam Fund | Putnam Equity vs. Putnam Multi Cap Growth |
| Eaton Vance vs. The Gabelli Small | Eaton Vance vs. Western Asset Diversified | Eaton Vance vs. Adams Diversified Equity | Eaton Vance vs. Principal Lifetime Hybrid |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |