Correlation Between Putnam Global and Fulcrum Diversified
Can any of the company-specific risk be diversified away by investing in both Putnam Global and Fulcrum Diversified 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 Fulcrum Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Global Income and Fulcrum Diversified Absolute, you can compare the effects of market volatilities on Putnam Global and Fulcrum Diversified 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 Fulcrum Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Global and Fulcrum Diversified.
Diversification Opportunities for Putnam Global and Fulcrum Diversified
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Putnam and Fulcrum is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Global Income and Fulcrum Diversified Absolute in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fulcrum Diversified 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 Income are associated (or correlated) with Fulcrum Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fulcrum Diversified has no effect on the direction of Putnam Global i.e., Putnam Global and Fulcrum Diversified go up and down completely randomly.
Pair Corralation between Putnam Global and Fulcrum Diversified
Assuming the 90 days horizon Putnam Global Income is expected to generate 0.32 times more return on investment than Fulcrum Diversified. However, Putnam Global Income is 3.11 times less risky than Fulcrum Diversified. It trades about -0.02 of its potential returns per unit of risk. Fulcrum Diversified Absolute is currently generating about -0.07 per unit of risk. If you would invest 1,017 in Putnam Global Income on September 13, 2024 and sell it today you would lose (2.00) from holding Putnam Global Income or give up 0.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Global Income vs. Fulcrum Diversified Absolute
Performance |
| Timeline |
| Putnam Global Income |
| Fulcrum Diversified |
Putnam Global and Fulcrum Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Global and Fulcrum Diversified
The main advantage of trading using opposite Putnam Global and Fulcrum Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Global position performs unexpectedly, Fulcrum Diversified 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 Fulcrum Diversified will offset losses from the drop in Fulcrum Diversified's long position.| Putnam Global vs. Putnam Equity Income | Putnam Global vs. Putnam Tax Exempt | Putnam Global vs. Putnam Floating Rate | Putnam Global vs. Putnam High Yield |
| Fulcrum Diversified vs. Fidelity Advisor Gold | Fulcrum Diversified vs. Invesco Gold Special | Fulcrum Diversified vs. Precious Metals And | Fulcrum Diversified vs. James Balanced Golden |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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