Correlation Between Putnam Global and Ft 8953
Can any of the company-specific risk be diversified away by investing in both Putnam Global and Ft 8953 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 Ft 8953 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 Ft 8953 Health, you can compare the effects of market volatilities on Putnam Global and Ft 8953 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 Ft 8953. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Global and Ft 8953.
Diversification Opportunities for Putnam Global and Ft 8953
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Putnam and FQUDRX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Global Health and Ft 8953 Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ft 8953 Health 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 Ft 8953. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ft 8953 Health has no effect on the direction of Putnam Global i.e., Putnam Global and Ft 8953 go up and down completely randomly.
Pair Corralation between Putnam Global and Ft 8953
If you would invest 6,055 in Putnam Global Health on September 4, 2024 and sell it today you would earn a total of 1,036 from holding Putnam Global Health or generate 17.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Putnam Global Health vs. Ft 8953 Health
Performance |
| Timeline |
| Putnam Global Health |
| Ft 8953 Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Putnam Global and Ft 8953 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Global and Ft 8953
The main advantage of trading using opposite Putnam Global and Ft 8953 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Global position performs unexpectedly, Ft 8953 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 Ft 8953 will offset losses from the drop in Ft 8953'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 |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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