Correlation Between George Putnam and Fisher Small
Can any of the company-specific risk be diversified away by investing in both George Putnam and Fisher Small 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 Fisher Small 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 Fisher Small Cap, you can compare the effects of market volatilities on George Putnam and Fisher Small 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 Fisher Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of George Putnam and Fisher Small.
Diversification Opportunities for George Putnam and Fisher Small
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between George and Fisher is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding George Putnam Fund and Fisher Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisher Small Cap 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 Fisher Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisher Small Cap has no effect on the direction of George Putnam i.e., George Putnam and Fisher Small go up and down completely randomly.
Pair Corralation between George Putnam and Fisher Small
Assuming the 90 days horizon George Putnam Fund is expected to generate 0.46 times more return on investment than Fisher Small. However, George Putnam Fund is 2.18 times less risky than Fisher Small. It trades about -0.06 of its potential returns per unit of risk. Fisher Small Cap is currently generating about -0.42 per unit of risk. If you would invest 2,591 in George Putnam Fund on November 28, 2024 and sell it today you would lose (17.00) from holding George Putnam Fund or give up 0.66% 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. Fisher Small Cap
Performance |
| Timeline |
| George Putnam |
| Fisher Small Cap |
George Putnam and Fisher Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with George Putnam and Fisher Small
The main advantage of trading using opposite George Putnam and Fisher Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if George Putnam position performs unexpectedly, Fisher Small 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 Fisher Small will offset losses from the drop in Fisher Small's long position.| George Putnam vs. Tax Managed Large Cap | George Putnam vs. Calvert Moderate Allocation | George Putnam vs. Gmo Asset Allocation | George Putnam vs. Pnc Balanced Allocation |
| Fisher Small vs. Rbc Impact Bond | Fisher Small vs. Nuveen Strategic Municipal | Fisher Small vs. Artisan High Income | Fisher Small vs. Calvert Bond Portfolio |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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