Correlation Between George Putnam and Western Asset
Can any of the company-specific risk be diversified away by investing in both George Putnam and Western Asset 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 Western Asset 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 Western Asset Diversified, you can compare the effects of market volatilities on George Putnam and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of George Putnam and Western Asset.
Diversification Opportunities for George Putnam and Western Asset
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between George and Western is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding George Putnam Fund and Western Asset Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Diversified 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Diversified has no effect on the direction of George Putnam i.e., George Putnam and Western Asset go up and down completely randomly.
Pair Corralation between George Putnam and Western Asset
Assuming the 90 days horizon George Putnam Fund is expected to generate 1.98 times more return on investment than Western Asset. However, George Putnam is 1.98 times more volatile than Western Asset Diversified. It trades about 0.16 of its potential returns per unit of risk. Western Asset Diversified is currently generating about -0.03 per unit of risk. If you would invest 2,595 in George Putnam Fund on August 29, 2024 and sell it today you would earn a total of 51.00 from holding George Putnam Fund or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
George Putnam Fund vs. Western Asset Diversified
Performance |
| Timeline |
| George Putnam |
| Western Asset Diversified |
George Putnam and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with George Putnam and Western Asset
The main advantage of trading using opposite George Putnam and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if George Putnam position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| George Putnam vs. Western Asset Diversified | George Putnam vs. Delaware Limited Term Diversified | George Putnam vs. Huber Capital Diversified | George Putnam vs. Prudential Core Conservative |
| Western Asset vs. Ab Bond Inflation | Western Asset vs. Oklahoma College Savings | Western Asset vs. Ab Bond Inflation | Western Asset vs. Ab Bond Inflation |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |