Correlation Between George Putnam and Doubleline Emerging
Can any of the company-specific risk be diversified away by investing in both George Putnam and Doubleline Emerging 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 Doubleline Emerging 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 Doubleline Emerging Markets, you can compare the effects of market volatilities on George Putnam and Doubleline Emerging 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 Doubleline Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of George Putnam and Doubleline Emerging.
Diversification Opportunities for George Putnam and Doubleline Emerging
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between George and Doubleline is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding George Putnam Fund and Doubleline Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Emerging 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 Doubleline Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Emerging has no effect on the direction of George Putnam i.e., George Putnam and Doubleline Emerging go up and down completely randomly.
Pair Corralation between George Putnam and Doubleline Emerging
Assuming the 90 days horizon George Putnam Fund is expected to generate 1.54 times more return on investment than Doubleline Emerging. However, George Putnam is 1.54 times more volatile than Doubleline Emerging Markets. It trades about 0.04 of its potential returns per unit of risk. Doubleline Emerging Markets is currently generating about -0.1 per unit of risk. If you would invest 2,584 in George Putnam Fund on September 12, 2024 and sell it today you would earn a total of 32.00 from holding George Putnam Fund or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
George Putnam Fund vs. Doubleline Emerging Markets
Performance |
| Timeline |
| George Putnam |
| Doubleline Emerging |
George Putnam and Doubleline Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with George Putnam and Doubleline Emerging
The main advantage of trading using opposite George Putnam and Doubleline Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if George Putnam position performs unexpectedly, Doubleline Emerging 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 Doubleline Emerging will offset losses from the drop in Doubleline Emerging's long position.| George Putnam vs. Hewitt Money Market | George Putnam vs. Edward Jones Money | George Putnam vs. Hsbc Treasury Money | George Putnam vs. Ubs Money Series |
| Doubleline Emerging vs. SCOR PK | Doubleline Emerging vs. Morningstar Unconstrained Allocation | Doubleline Emerging vs. Via Renewables | Doubleline Emerging vs. Bondbloxx ETF Trust |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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