Correlation Between Pimco Global and Putnam Equity
Can any of the company-specific risk be diversified away by investing in both Pimco Global and Putnam Equity 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 Pimco Global and Putnam Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Global Stocksplus and Putnam Equity Income, you can compare the effects of market volatilities on Pimco Global and Putnam Equity 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 Pimco Global with a short position of Putnam Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Global and Putnam Equity.
Diversification Opportunities for Pimco Global and Putnam Equity
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pimco and Putnam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Global Stocksplus and Putnam Equity Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Equity Income and Pimco 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 Pimco Global Stocksplus are associated (or correlated) with Putnam Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Equity Income has no effect on the direction of Pimco Global i.e., Pimco Global and Putnam Equity go up and down completely randomly.
Pair Corralation between Pimco Global and Putnam Equity
Considering the 90-day investment horizon Pimco Global Stocksplus is expected to generate 1.63 times more return on investment than Putnam Equity. However, Pimco Global is 1.63 times more volatile than Putnam Equity Income. It trades about 0.06 of its potential returns per unit of risk. Putnam Equity Income is currently generating about 0.08 per unit of risk. If you would invest 596.00 in Pimco Global Stocksplus on November 27, 2024 and sell it today you would earn a total of 206.00 from holding Pimco Global Stocksplus or generate 34.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Global Stocksplus vs. Putnam Equity Income
Performance |
| Timeline |
| Pimco Global Stocksplus |
| Putnam Equity Income |
Pimco Global and Putnam Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Global and Putnam Equity
The main advantage of trading using opposite Pimco Global and Putnam Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Global position performs unexpectedly, Putnam Equity 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 Equity will offset losses from the drop in Putnam Equity's long position.| Pimco Global vs. Pimco Income Strategy | Pimco Global vs. Pimco Corporate Income | Pimco Global vs. Pimco Corporate Income | Pimco Global vs. Pimco Income Strategy |
| Putnam Equity vs. Putnam Equity Income | Putnam Equity vs. Putnam Tax Exempt | Putnam Equity vs. Putnam Floating Rate | Putnam Equity vs. Putnam High Yield |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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