Correlation Between Prudential Jennison and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Prudential Jennison and Putnam Global 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 Prudential Jennison and Putnam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prudential Jennison Financial and Putnam Global Health, you can compare the effects of market volatilities on Prudential Jennison and Putnam Global 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 Prudential Jennison with a short position of Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Jennison and Putnam Global.
Diversification Opportunities for Prudential Jennison and Putnam Global
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Prudential and Putnam is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Jennison Financial and Putnam Global Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Health and Prudential Jennison 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 Prudential Jennison Financial are associated (or correlated) with Putnam Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Global Health has no effect on the direction of Prudential Jennison i.e., Prudential Jennison and Putnam Global go up and down completely randomly.
Pair Corralation between Prudential Jennison and Putnam Global
Assuming the 90 days horizon Prudential Jennison Financial is expected to generate 1.35 times more return on investment than Putnam Global. However, Prudential Jennison is 1.35 times more volatile than Putnam Global Health. It trades about 0.15 of its potential returns per unit of risk. Putnam Global Health is currently generating about 0.05 per unit of risk. If you would invest 1,637 in Prudential Jennison Financial on August 31, 2024 and sell it today you would earn a total of 1,116 from holding Prudential Jennison Financial or generate 68.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prudential Jennison Financial vs. Putnam Global Health
Performance |
| Timeline |
| Prudential Jennison |
| Putnam Global Health |
Prudential Jennison and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential Jennison and Putnam Global
The main advantage of trading using opposite Prudential Jennison and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential Jennison position performs unexpectedly, Putnam Global 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 Global will offset losses from the drop in Putnam Global's long position.| Prudential Jennison vs. Putnam Convertible Incm Gwth | Prudential Jennison vs. Advent Claymore Convertible | Prudential Jennison vs. Virtus Convertible | Prudential Jennison vs. The Gamco Global |
| Putnam Global vs. 1919 Financial Services | Putnam Global vs. Gabelli Global Financial | Putnam Global vs. Prudential Jennison Financial | Putnam Global vs. Transamerica Financial Life |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |