Correlation Between George Putnam and Putnam Dynamic
Can any of the company-specific risk be diversified away by investing in both George Putnam and Putnam Dynamic 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 Dynamic 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 Dynamic Asset, you can compare the effects of market volatilities on George Putnam and Putnam Dynamic 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 Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of George Putnam and Putnam Dynamic.
Diversification Opportunities for George Putnam and Putnam Dynamic
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between George and Putnam is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding George Putnam Fund and Putnam Dynamic Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Dynamic Asset 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 Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Dynamic Asset has no effect on the direction of George Putnam i.e., George Putnam and Putnam Dynamic go up and down completely randomly.
Pair Corralation between George Putnam and Putnam Dynamic
Assuming the 90 days horizon George Putnam is expected to generate 1.13 times less return on investment than Putnam Dynamic. But when comparing it to its historical volatility, George Putnam Fund is 1.16 times less risky than Putnam Dynamic. It trades about 0.13 of its potential returns per unit of risk. Putnam Dynamic Asset is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2,186 in Putnam Dynamic Asset on August 25, 2024 and sell it today you would earn a total of 39.00 from holding Putnam Dynamic Asset or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
George Putnam Fund vs. Putnam Dynamic Asset
Performance |
| Timeline |
| George Putnam |
| Putnam Dynamic Asset |
George Putnam and Putnam Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with George Putnam and Putnam Dynamic
The main advantage of trading using opposite George Putnam and Putnam Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if George Putnam position performs unexpectedly, Putnam Dynamic 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 Dynamic will offset losses from the drop in Putnam Dynamic's long position.| George Putnam vs. Putnam Equity Income | George Putnam vs. Putnam Tax Exempt | George Putnam vs. Putnam Floating Rate | George Putnam vs. Putnam High Yield |
| Putnam Dynamic vs. Artisan Select Equity | Putnam Dynamic vs. Dodge International Stock | Putnam Dynamic vs. Ms Global Fixed | Putnam Dynamic vs. Ab Select Equity |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |