Correlation Between Putnam Equity and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Putnam Equity and Segall Bryant 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 Segall Bryant 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 Segall Bryant Hamill, you can compare the effects of market volatilities on Putnam Equity and Segall Bryant 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 Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Equity and Segall Bryant.
Diversification Opportunities for Putnam Equity and Segall Bryant
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Putnam and Segall is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Equity Income and Segall Bryant Hamill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Segall Bryant Hamill 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 Segall Bryant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Segall Bryant Hamill has no effect on the direction of Putnam Equity i.e., Putnam Equity and Segall Bryant go up and down completely randomly.
Pair Corralation between Putnam Equity and Segall Bryant
Assuming the 90 days horizon Putnam Equity Income is expected to generate 0.68 times more return on investment than Segall Bryant. However, Putnam Equity Income is 1.46 times less risky than Segall Bryant. It trades about 0.1 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.06 per unit of risk. If you would invest 2,773 in Putnam Equity Income on August 30, 2024 and sell it today you would earn a total of 1,106 from holding Putnam Equity Income or generate 39.88% 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. Segall Bryant Hamill
Performance |
| Timeline |
| Putnam Equity Income |
| Segall Bryant Hamill |
Putnam Equity and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Equity and Segall Bryant
The main advantage of trading using opposite Putnam Equity and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Equity position performs unexpectedly, Segall Bryant 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 Segall Bryant will offset losses from the drop in Segall Bryant's long position.| Putnam Equity vs. Dodge Cox Stock | Putnam Equity vs. American Mutual Fund | Putnam Equity vs. American Funds American | Putnam Equity vs. American Funds American |
| Segall Bryant vs. Putnam Equity Income | Segall Bryant vs. Putnam Growth Opportunities | Segall Bryant vs. HUMANA INC | Segall Bryant vs. Aquagold International |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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