Correlation Between Putnam Global and Calvert Fund
Can any of the company-specific risk be diversified away by investing in both Putnam Global and Calvert Fund 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 Putnam Global and Calvert Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Global Financials and Calvert Fund , you can compare the effects of market volatilities on Putnam Global and Calvert Fund 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 Putnam Global with a short position of Calvert Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Global and Calvert Fund.
Diversification Opportunities for Putnam Global and Calvert Fund
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Putnam and Calvert is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Global Financials and Calvert Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Fund and Putnam Global 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 Putnam Global Financials are associated (or correlated) with Calvert Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Fund has no effect on the direction of Putnam Global i.e., Putnam Global and Calvert Fund go up and down completely randomly.
Pair Corralation between Putnam Global and Calvert Fund
Assuming the 90 days horizon Putnam Global is expected to generate 1.65 times less return on investment than Calvert Fund. But when comparing it to its historical volatility, Putnam Global Financials is 1.93 times less risky than Calvert Fund. It trades about 0.05 of its potential returns per unit of risk. Calvert Fund is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 783.00 in Calvert Fund on October 16, 2024 and sell it today you would earn a total of 148.00 from holding Calvert Fund or generate 18.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 42.52% |
| Values | Daily Returns |
Putnam Global Financials vs. Calvert Fund
Performance |
| Timeline |
| Putnam Global Financials |
| Calvert Fund |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Putnam Global and Calvert Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Global and Calvert Fund
The main advantage of trading using opposite Putnam Global and Calvert Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Global position performs unexpectedly, Calvert Fund 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 Calvert Fund will offset losses from the drop in Calvert Fund's long position.| Putnam Global vs. Multisector Bond Sma | Putnam Global vs. Barings High Yield | Putnam Global vs. Bbh Intermediate Municipal | Putnam Global vs. T Rowe Price |
| Calvert Fund vs. Calvert Developed Market | Calvert Fund vs. Calvert Developed Market | Calvert Fund vs. Calvert Short Duration | Calvert Fund vs. Calvert International Responsible |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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