Correlation Between George Putnam and Putnam U
Can any of the company-specific risk be diversified away by investing in both George Putnam and Putnam U 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 U 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 U S, you can compare the effects of market volatilities on George Putnam and Putnam U 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 U. Check out your portfolio center. Please also check ongoing floating volatility patterns of George Putnam and Putnam U.
Diversification Opportunities for George Putnam and Putnam U
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between George and Putnam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding George Putnam Fund and Putnam U S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam U S 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 U. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam U S has no effect on the direction of George Putnam i.e., George Putnam and Putnam U go up and down completely randomly.
Pair Corralation between George Putnam and Putnam U
If you would invest 868.00 in Putnam U S on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Putnam U S or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
George Putnam Fund vs. Putnam U S
Performance |
| Timeline |
| George Putnam |
| Putnam U S |
George Putnam and Putnam U Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with George Putnam and Putnam U
The main advantage of trading using opposite George Putnam and Putnam U positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if George Putnam position performs unexpectedly, Putnam U 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 U will offset losses from the drop in Putnam U's long position.| George Putnam vs. Lord Abbett Diversified | George Putnam vs. Fulcrum Diversified Absolute | George Putnam vs. Diversified Real Asset | George Putnam vs. Wilmington Diversified Income |
| Putnam U vs. Massmutual Premier Diversified | Putnam U vs. Guidepath Conservative Income | Putnam U vs. Aqr Diversified Arbitrage | Putnam U vs. American Funds Conservative |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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