Correlation Between George Putnam and Putnam Global
Can any of the company-specific risk be diversified away by investing in both George Putnam 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 George Putnam and Putnam Global 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 Global Industrials, you can compare the effects of market volatilities on George Putnam 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 George Putnam with a short position of Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of George Putnam and Putnam Global.
Diversification Opportunities for George Putnam and Putnam Global
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between George and Putnam is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding George Putnam Fund and Putnam Global Industrials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Industrials 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 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 Industrials has no effect on the direction of George Putnam i.e., George Putnam and Putnam Global go up and down completely randomly.
Pair Corralation between George Putnam and Putnam Global
If you would invest 3,619 in Putnam Global Industrials on August 30, 2024 and sell it today you would earn a total of 67.00 from holding Putnam Global Industrials or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
George Putnam Fund vs. Putnam Global Industrials
Performance |
| Timeline |
| George Putnam |
| Putnam Global Industrials |
George Putnam and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with George Putnam and Putnam Global
The main advantage of trading using opposite George Putnam and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if George Putnam 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.| George Putnam vs. American Balanced Fund | George Putnam vs. American Balanced Fund | George Putnam vs. HUMANA INC | George Putnam vs. Aquagold International |
| Putnam Global vs. Franklin Moderate Allocation | Putnam Global vs. Pgim Conservative Retirement | Putnam Global vs. Calvert Moderate Allocation | Putnam Global vs. Blackrock Moderate Prepared |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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