Correlation Between Putnam Global and Siit High
Can any of the company-specific risk be diversified away by investing in both Putnam Global and Siit High 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 Siit High 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 Siit High Yield, you can compare the effects of market volatilities on Putnam Global and Siit High 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 Siit High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Global and Siit High.
Diversification Opportunities for Putnam Global and Siit High
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Putnam and Siit is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Global Financials and Siit High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit High Yield 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 Siit High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit High Yield has no effect on the direction of Putnam Global i.e., Putnam Global and Siit High go up and down completely randomly.
Pair Corralation between Putnam Global and Siit High
Assuming the 90 days horizon Putnam Global is expected to generate 1.23 times less return on investment than Siit High. In addition to that, Putnam Global is 1.46 times more volatile than Siit High Yield. It trades about 0.05 of its total potential returns per unit of risk. Siit High Yield is currently generating about 0.1 per unit of volatility. If you would invest 610.00 in Siit High Yield on October 16, 2024 and sell it today you would earn a total of 100.00 from holding Siit High Yield or generate 16.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 39.68% |
| Values | Daily Returns |
Putnam Global Financials vs. Siit High Yield
Performance |
| Timeline |
| Putnam Global Financials |
| Siit High Yield |
Putnam Global and Siit High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Global and Siit High
The main advantage of trading using opposite Putnam Global and Siit High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Global position performs unexpectedly, Siit High 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 Siit High will offset losses from the drop in Siit High'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 |
| Siit High vs. Prudential Financial Services | Siit High vs. Icon Financial Fund | Siit High vs. Goldman Sachs Financial | Siit High vs. Putnam Global Financials |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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