Correlation Between Polen Global and Putnam Multi-cap
Can any of the company-specific risk be diversified away by investing in both Polen Global and Putnam Multi-cap 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 Polen Global and Putnam Multi-cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polen Global Growth and Putnam Multi Cap Growth, you can compare the effects of market volatilities on Polen Global and Putnam Multi-cap 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 Polen Global with a short position of Putnam Multi-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polen Global and Putnam Multi-cap.
Diversification Opportunities for Polen Global and Putnam Multi-cap
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Polen and PUTNAM is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Polen Global Growth and Putnam Multi Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Multi Cap and Polen 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 Polen Global Growth are associated (or correlated) with Putnam Multi-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Multi Cap has no effect on the direction of Polen Global i.e., Polen Global and Putnam Multi-cap go up and down completely randomly.
Pair Corralation between Polen Global and Putnam Multi-cap
Assuming the 90 days horizon Polen Global is expected to generate 1.07 times less return on investment than Putnam Multi-cap. In addition to that, Polen Global is 1.01 times more volatile than Putnam Multi Cap Growth. It trades about 0.08 of its total potential returns per unit of risk. Putnam Multi Cap Growth is currently generating about 0.08 per unit of volatility. If you would invest 6,652 in Putnam Multi Cap Growth on August 26, 2024 and sell it today you would earn a total of 1,156 from holding Putnam Multi Cap Growth or generate 17.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polen Global Growth vs. Putnam Multi Cap Growth
Performance |
| Timeline |
| Polen Global Growth |
| Putnam Multi Cap |
Polen Global and Putnam Multi-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polen Global and Putnam Multi-cap
The main advantage of trading using opposite Polen Global and Putnam Multi-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polen Global position performs unexpectedly, Putnam Multi-cap 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 Multi-cap will offset losses from the drop in Putnam Multi-cap's long position.| Polen Global vs. Putnam Multi Cap Growth | Polen Global vs. Polen Growth Fund | Polen Global vs. Putnam Global Equity | Polen Global vs. Putnam International Equity |
| Putnam Multi-cap vs. George Putnam Fund | Putnam Multi-cap vs. Putnam Dynamic Asset | Putnam Multi-cap vs. Aquagold International | Putnam Multi-cap vs. Morningstar Unconstrained Allocation |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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