Correlation Between Putnam Global and Putnam High
Can any of the company-specific risk be diversified away by investing in both Putnam Global and Putnam 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 Putnam High 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 Putnam High Yield, you can compare the effects of market volatilities on Putnam Global and Putnam 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 Putnam High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Global and Putnam High.
Diversification Opportunities for Putnam Global and Putnam High
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Putnam and Putnam is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Global Health and Putnam High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam 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 Health are associated (or correlated) with Putnam High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam High Yield has no effect on the direction of Putnam Global i.e., Putnam Global and Putnam High go up and down completely randomly.
Pair Corralation between Putnam Global and Putnam High
Assuming the 90 days horizon Putnam Global Health is expected to under-perform the Putnam High. In addition to that, Putnam Global is 4.73 times more volatile than Putnam High Yield. It trades about -0.27 of its total potential returns per unit of risk. Putnam High Yield is currently generating about 0.11 per unit of volatility. If you would invest 537.00 in Putnam High Yield on August 27, 2024 and sell it today you would earn a total of 2.00 from holding Putnam High Yield or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Global Health vs. Putnam High Yield
Performance |
| Timeline |
| Putnam Global Health |
| Putnam High Yield |
Putnam Global and Putnam High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Global and Putnam High
The main advantage of trading using opposite Putnam Global and Putnam High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Global position performs unexpectedly, Putnam 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 Putnam High will offset losses from the drop in Putnam High'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 |
| Putnam High vs. Putnam Equity Income | Putnam High vs. Putnam Tax Exempt | Putnam High vs. Putnam Floating Rate | Putnam High vs. Putnam Floating Rate |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |