Correlation Between Putnam Global and Mesirow Financial
Can any of the company-specific risk be diversified away by investing in both Putnam Global and Mesirow Financial 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 Mesirow Financial 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 Mesirow Financial High, you can compare the effects of market volatilities on Putnam Global and Mesirow Financial 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 Mesirow Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Global and Mesirow Financial.
Diversification Opportunities for Putnam Global and Mesirow Financial
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Putnam and Mesirow is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Global Financials and Mesirow Financial High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mesirow Financial High 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 Mesirow Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mesirow Financial High has no effect on the direction of Putnam Global i.e., Putnam Global and Mesirow Financial go up and down completely randomly.
Pair Corralation between Putnam Global and Mesirow Financial
Assuming the 90 days horizon Putnam Global is expected to generate 1.33 times less return on investment than Mesirow Financial. In addition to that, Putnam Global is 3.59 times more volatile than Mesirow Financial High. It trades about 0.04 of its total potential returns per unit of risk. Mesirow Financial High is currently generating about 0.18 per unit of volatility. If you would invest 830.00 in Mesirow Financial High on November 2, 2024 and sell it today you would earn a total of 23.00 from holding Mesirow Financial High or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Global Financials vs. Mesirow Financial High
Performance |
| Timeline |
| Putnam Global Financials |
| Mesirow Financial High |
Putnam Global and Mesirow Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Global and Mesirow Financial
The main advantage of trading using opposite Putnam Global and Mesirow Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Global position performs unexpectedly, Mesirow Financial 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 Mesirow Financial will offset losses from the drop in Mesirow Financial's long position.| Putnam Global vs. Artisan Developing World | Putnam Global vs. Balanced Strategy Fund | Putnam Global vs. Barings Emerging Markets | Putnam Global vs. Embark Commodity Strategy |
| Mesirow Financial vs. Vy Goldman Sachs | Mesirow Financial vs. Global Gold Fund | Mesirow Financial vs. Wells Fargo Advantage | Mesirow Financial vs. First Eagle Gold |
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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