Correlation Between Putnam Global and Tiaa Cref
Can any of the company-specific risk be diversified away by investing in both Putnam Global and Tiaa Cref 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 Tiaa Cref 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 Tiaa Cref Mid Cap Growth, you can compare the effects of market volatilities on Putnam Global and Tiaa Cref 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 Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Global and Tiaa Cref.
Diversification Opportunities for Putnam Global and Tiaa Cref
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Putnam and Tiaa is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Global Financials and Tiaa Cref Mid Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Mid 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 Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Mid has no effect on the direction of Putnam Global i.e., Putnam Global and Tiaa Cref go up and down completely randomly.
Pair Corralation between Putnam Global and Tiaa Cref
Assuming the 90 days horizon Putnam Global Financials is expected to under-perform the Tiaa Cref. But the mutual fund apears to be less risky and, when comparing its historical volatility, Putnam Global Financials is 2.19 times less risky than Tiaa Cref. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Tiaa Cref Mid Cap Growth is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,043 in Tiaa Cref Mid Cap Growth on October 24, 2024 and sell it today you would earn a total of 212.00 from holding Tiaa Cref Mid Cap Growth or generate 10.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Global Financials vs. Tiaa Cref Mid Cap Growth
Performance |
| Timeline |
| Putnam Global Financials |
| Tiaa Cref Mid |
Putnam Global and Tiaa Cref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Global and Tiaa Cref
The main advantage of trading using opposite Putnam Global and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Global position performs unexpectedly, Tiaa Cref 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 Tiaa Cref will offset losses from the drop in Tiaa Cref's long position.| Putnam Global vs. Mutual Of America | Putnam Global vs. Small Cap Growth Profund | Putnam Global vs. Amg River Road | Putnam Global vs. Great West Loomis Sayles |
| Tiaa Cref vs. Tiaa Cref Emerging Markets | Tiaa Cref vs. Tiaa Cref Emerging Markets | Tiaa Cref vs. Tiaa Cref Emerging Markets | Tiaa Cref vs. Tiaa Cref Emerging Markets |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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