Correlation Between George Putnam and Putnam Floating
Can any of the company-specific risk be diversified away by investing in both George Putnam and Putnam Floating 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 George Putnam and Putnam Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between George Putnam Fund and Putnam Floating Rate, you can compare the effects of market volatilities on George Putnam and Putnam Floating 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 George Putnam with a short position of Putnam Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of George Putnam and Putnam Floating.
Diversification Opportunities for George Putnam and Putnam Floating
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between George and Putnam is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding George Putnam Fund and Putnam Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Floating Rate and George Putnam 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 George Putnam Fund are associated (or correlated) with Putnam Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Floating Rate has no effect on the direction of George Putnam i.e., George Putnam and Putnam Floating go up and down completely randomly.
Pair Corralation between George Putnam and Putnam Floating
Assuming the 90 days horizon George Putnam Fund is expected to generate 3.0 times more return on investment than Putnam Floating. However, George Putnam is 3.0 times more volatile than Putnam Floating Rate. It trades about 0.1 of its potential returns per unit of risk. Putnam Floating Rate is currently generating about 0.19 per unit of risk. If you would invest 1,941 in George Putnam Fund on August 29, 2024 and sell it today you would earn a total of 582.00 from holding George Putnam Fund or generate 29.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
George Putnam Fund vs. Putnam Floating Rate
Performance |
| Timeline |
| George Putnam |
| Putnam Floating Rate |
George Putnam and Putnam Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with George Putnam and Putnam Floating
The main advantage of trading using opposite George Putnam and Putnam Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if George Putnam position performs unexpectedly, Putnam Floating 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 Floating will offset losses from the drop in Putnam Floating's long position.| George Putnam vs. American Balanced Fund | George Putnam vs. American Balanced Fund | George Putnam vs. HUMANA INC | George Putnam vs. Aquagold International |
| Putnam Floating vs. Kinetics Market Opportunities | Putnam Floating vs. Barings Active Short | Putnam Floating vs. Versatile Bond Portfolio | Putnam Floating vs. Mirova Global Green |
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.
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