Correlation Between Putnam Global and Jhancock Global
Can any of the company-specific risk be diversified away by investing in both Putnam Global and Jhancock Global 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 Jhancock Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Global Industrials and Jhancock Global Equity, you can compare the effects of market volatilities on Putnam Global and Jhancock Global 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 Jhancock Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Global and Jhancock Global.
Diversification Opportunities for Putnam Global and Jhancock Global
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Putnam and Jhancock is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Global Industrials and Jhancock Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Global Equity 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 Industrials are associated (or correlated) with Jhancock Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Global Equity has no effect on the direction of Putnam Global i.e., Putnam Global and Jhancock Global go up and down completely randomly.
Pair Corralation between Putnam Global and Jhancock Global
Assuming the 90 days horizon Putnam Global Industrials is expected to generate 1.5 times more return on investment than Jhancock Global. However, Putnam Global is 1.5 times more volatile than Jhancock Global Equity. It trades about 0.08 of its potential returns per unit of risk. Jhancock Global Equity is currently generating about 0.07 per unit of risk. If you would invest 2,814 in Putnam Global Industrials on September 12, 2024 and sell it today you would earn a total of 792.00 from holding Putnam Global Industrials or generate 28.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Global Industrials vs. Jhancock Global Equity
Performance |
| Timeline |
| Putnam Global Industrials |
| Jhancock Global Equity |
Putnam Global and Jhancock Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Global and Jhancock Global
The main advantage of trading using opposite Putnam Global and Jhancock Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Global position performs unexpectedly, Jhancock Global 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 Jhancock Global will offset losses from the drop in Jhancock Global's long position.| Putnam Global vs. Jhancock Global Equity | Putnam Global vs. Franklin Mutual Global | Putnam Global vs. Artisan Global Unconstrained | Putnam Global vs. Kinetics Global Fund |
| Jhancock Global vs. John Hancock Financial | Jhancock Global vs. Blackrock Financial Institutions | Jhancock Global vs. Angel Oak Financial | Jhancock Global vs. Icon Financial Fund |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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