Correlation Between George Putnam and Goehring Rozencwajg
Can any of the company-specific risk be diversified away by investing in both George Putnam and Goehring Rozencwajg 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 George Putnam and Goehring Rozencwajg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between George Putnam Fund and Goehring Rozencwajg Resources, you can compare the effects of market volatilities on George Putnam and Goehring Rozencwajg 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 George Putnam with a short position of Goehring Rozencwajg. Check out your portfolio center. Please also check ongoing floating volatility patterns of George Putnam and Goehring Rozencwajg.
Diversification Opportunities for George Putnam and Goehring Rozencwajg
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between George and Goehring is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding George Putnam Fund and Goehring Rozencwajg Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goehring Rozencwajg and George Putnam 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 George Putnam Fund are associated (or correlated) with Goehring Rozencwajg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goehring Rozencwajg has no effect on the direction of George Putnam i.e., George Putnam and Goehring Rozencwajg go up and down completely randomly.
Pair Corralation between George Putnam and Goehring Rozencwajg
Assuming the 90 days horizon George Putnam Fund is expected to under-perform the Goehring Rozencwajg. But the mutual fund apears to be less risky and, when comparing its historical volatility, George Putnam Fund is 1.68 times less risky than Goehring Rozencwajg. The mutual fund trades about -0.16 of its potential returns per unit of risk. The Goehring Rozencwajg Resources is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 1,383 in Goehring Rozencwajg Resources on September 12, 2024 and sell it today you would lose (29.00) from holding Goehring Rozencwajg Resources or give up 2.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
George Putnam Fund vs. Goehring Rozencwajg Resources
Performance |
| Timeline |
| George Putnam |
| Goehring Rozencwajg |
George Putnam and Goehring Rozencwajg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with George Putnam and Goehring Rozencwajg
The main advantage of trading using opposite George Putnam and Goehring Rozencwajg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if George Putnam position performs unexpectedly, Goehring Rozencwajg 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 Goehring Rozencwajg will offset losses from the drop in Goehring Rozencwajg's long position.| George Putnam vs. Morningstar Defensive Bond | George Putnam vs. Dws Government Money | George Putnam vs. Ambrus Core Bond | George Putnam vs. Touchstone Premium Yield |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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