Correlation Between Putnam High and George Putnam
Can any of the company-specific risk be diversified away by investing in both Putnam High and George Putnam 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 George Putnam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam High Yield and George Putnam Balanced, you can compare the effects of market volatilities on Putnam High and George Putnam 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 George Putnam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam High and George Putnam.
Diversification Opportunities for Putnam High and George Putnam
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Putnam and George is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Putnam High Yield and George Putnam Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on George Putnam Balanced 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 Yield are associated (or correlated) with George Putnam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of George Putnam Balanced has no effect on the direction of Putnam High i.e., Putnam High and George Putnam go up and down completely randomly.
Pair Corralation between Putnam High and George Putnam
Assuming the 90 days horizon Putnam High is expected to generate 2.0 times less return on investment than George Putnam. But when comparing it to its historical volatility, Putnam High Yield is 2.06 times less risky than George Putnam. It trades about 0.12 of its potential returns per unit of risk. George Putnam Balanced is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,946 in George Putnam Balanced on August 31, 2024 and sell it today you would earn a total of 703.00 from holding George Putnam Balanced or generate 36.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam High Yield vs. George Putnam Balanced
Performance |
| Timeline |
| Putnam High Yield |
| George Putnam Balanced |
Putnam High and George Putnam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam High and George Putnam
The main advantage of trading using opposite Putnam High and George Putnam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam High position performs unexpectedly, George Putnam 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 George Putnam will offset losses from the drop in George Putnam's long position.| Putnam High vs. Federated Institutional High | Putnam High vs. Valic Company I | Putnam High vs. Prudential Short Duration | Putnam High vs. Blackrock High Yield |
| George Putnam vs. American Funds American | George Putnam vs. American Funds American | George Putnam vs. American Balanced | George Putnam vs. American Balanced Fund |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |