Correlation Between Pgim Jennison and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Putnam 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 Pgim Jennison and Putnam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pgim Jennison Technology and Putnam Global Financials, you can compare the effects of market volatilities on Pgim Jennison and Putnam 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 Pgim Jennison with a short position of Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Putnam Global.
Diversification Opportunities for Pgim Jennison and Putnam Global
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pgim and Putnam is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Technology and Putnam Global Financials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Financials and Pgim Jennison 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 Pgim Jennison Technology are associated (or correlated) with Putnam Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Global Financials has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Putnam Global go up and down completely randomly.
Pair Corralation between Pgim Jennison and Putnam Global
Assuming the 90 days horizon Pgim Jennison Technology is expected to generate 2.5 times more return on investment than Putnam Global. However, Pgim Jennison is 2.5 times more volatile than Putnam Global Financials. It trades about -0.14 of its potential returns per unit of risk. Putnam Global Financials is currently generating about -0.36 per unit of risk. If you would invest 2,706 in Pgim Jennison Technology on October 12, 2024 and sell it today you would lose (122.00) from holding Pgim Jennison Technology or give up 4.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pgim Jennison Technology vs. Putnam Global Financials
Performance |
| Timeline |
| Pgim Jennison Technology |
| Putnam Global Financials |
Pgim Jennison and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and Putnam Global
The main advantage of trading using opposite Pgim Jennison and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Putnam 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 Putnam Global will offset losses from the drop in Putnam Global's long position.| Pgim Jennison vs. The Gold Bullion | Pgim Jennison vs. Short Precious Metals | Pgim Jennison vs. International Investors Gold | Pgim Jennison vs. First Eagle Gold |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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