Correlation Between Putnam High and Putnam International
Can any of the company-specific risk be diversified away by investing in both Putnam High and Putnam International 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 Putnam International 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 Putnam International Equity, you can compare the effects of market volatilities on Putnam High and Putnam International 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 Putnam International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam High and Putnam International.
Diversification Opportunities for Putnam High and Putnam International
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Putnam and Putnam is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Putnam High Yield and Putnam International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam International 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 Putnam International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam International has no effect on the direction of Putnam High i.e., Putnam High and Putnam International go up and down completely randomly.
Pair Corralation between Putnam High and Putnam International
If you would invest 537.00 in Putnam High Yield on August 31, 2024 and sell it today you would earn a total of 3.00 from holding Putnam High Yield or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam High Yield vs. Putnam International Equity
Performance |
| Timeline |
| Putnam High Yield |
| Putnam International |
Putnam High and Putnam International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam High and Putnam International
The main advantage of trading using opposite Putnam High and Putnam International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam High position performs unexpectedly, Putnam International 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 Putnam International will offset losses from the drop in Putnam International'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 |
| Putnam International vs. Hennessy Technology Fund | Putnam International vs. Columbia Global Technology | Putnam International vs. Towpath Technology | Putnam International vs. Janus Global Technology |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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