Correlation Between George Putnam and Putnam Growth
Can any of the company-specific risk be diversified away by investing in both George Putnam and Putnam Growth 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 Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between George Putnam Balanced and Putnam Growth Opportunities, you can compare the effects of market volatilities on George Putnam and Putnam Growth 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 Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of George Putnam and Putnam Growth.
Diversification Opportunities for George Putnam and Putnam Growth
-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 Balanced and Putnam Growth Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Growth Opport 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 Balanced are associated (or correlated) with Putnam Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Growth Opport has no effect on the direction of George Putnam i.e., George Putnam and Putnam Growth go up and down completely randomly.
Pair Corralation between George Putnam and Putnam Growth
If you would invest 2,626 in George Putnam Balanced on September 1, 2024 and sell it today you would earn a total of 7.00 from holding George Putnam Balanced or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
George Putnam Balanced vs. Putnam Growth Opportunities
Performance |
| Timeline |
| George Putnam Balanced |
| Putnam Growth Opport |
George Putnam and Putnam Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with George Putnam and Putnam Growth
The main advantage of trading using opposite George Putnam and Putnam Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if George Putnam position performs unexpectedly, Putnam Growth 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 Growth will offset losses from the drop in Putnam Growth's long position.| George Putnam vs. Heartland Value Plus | George Putnam vs. Hennessy Nerstone Mid | George Putnam vs. Victory Rs Partners | George Putnam vs. Palm Valley Capital |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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