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 Tax Managed, 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
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Putnam and Eaton is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Equity Income and Eaton Vance Tax Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Tax 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 Tax 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 is expected to generate 1.87 times less return on investment than Eaton Vance. But when comparing it to its historical volatility, Putnam Equity Income is 2.01 times less risky than Eaton Vance. It trades about 0.37 of its potential returns per unit of risk. Eaton Vance Tax Managed is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 3,202 in Eaton Vance Tax Managed on September 1, 2024 and sell it today you would earn a total of 327.00 from holding Eaton Vance Tax Managed or generate 10.21% 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 Tax Managed
Performance |
| Timeline |
| Putnam Equity Income |
| Eaton Vance Tax |
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. Msif Real Estate | Eaton Vance vs. Columbia Real Estate | Eaton Vance vs. Jhancock Real Estate | Eaton Vance vs. Franklin Real Estate |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |