Correlation Between Putnam Global and Enhanced Fixed
Can any of the company-specific risk be diversified away by investing in both Putnam Global and Enhanced Fixed 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 Enhanced Fixed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Global Health and Enhanced Fixed Income, you can compare the effects of market volatilities on Putnam Global and Enhanced Fixed 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 Enhanced Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Global and Enhanced Fixed.
Diversification Opportunities for Putnam Global and Enhanced Fixed
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Putnam and Enhanced is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Global Health and Enhanced Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enhanced Fixed Income 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 Health are associated (or correlated) with Enhanced Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enhanced Fixed Income has no effect on the direction of Putnam Global i.e., Putnam Global and Enhanced Fixed go up and down completely randomly.
Pair Corralation between Putnam Global and Enhanced Fixed
Assuming the 90 days horizon Putnam Global is expected to generate 1.02 times less return on investment than Enhanced Fixed. In addition to that, Putnam Global is 1.76 times more volatile than Enhanced Fixed Income. It trades about 0.03 of its total potential returns per unit of risk. Enhanced Fixed Income is currently generating about 0.06 per unit of volatility. If you would invest 900.00 in Enhanced Fixed Income on October 25, 2024 and sell it today you would earn a total of 105.00 from holding Enhanced Fixed Income or generate 11.67% 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 Health vs. Enhanced Fixed Income
Performance |
| Timeline |
| Putnam Global Health |
| Enhanced Fixed Income |
Putnam Global and Enhanced Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Global and Enhanced Fixed
The main advantage of trading using opposite Putnam Global and Enhanced Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Global position performs unexpectedly, Enhanced Fixed 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 Enhanced Fixed will offset losses from the drop in Enhanced Fixed's long position.| Putnam Global vs. Investec Emerging Markets | Putnam Global vs. Ashmore Emerging Markets | Putnam Global vs. Vanguard Lifestrategy Moderate | Putnam Global vs. Angel Oak Multi Strategy |
| Enhanced Fixed vs. Short Term Government Fund | Enhanced Fixed vs. Virtus Seix Government | Enhanced Fixed vs. Schwab Government Money | Enhanced Fixed vs. Davis Government Bond |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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