Correlation Between Pimco High and George Putnam
Can any of the company-specific risk be diversified away by investing in both Pimco High and George Putnam 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 High and George Putnam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco High Yield and George Putnam Balanced, you can compare the effects of market volatilities on Pimco High and George Putnam 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 High with a short position of George Putnam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco High and George Putnam.
Diversification Opportunities for Pimco High and George Putnam
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pimco and George is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Pimco High Yield and George Putnam Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on George Putnam Balanced and Pimco High 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 High Yield are associated (or correlated) with George Putnam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of George Putnam Balanced has no effect on the direction of Pimco High i.e., Pimco High and George Putnam go up and down completely randomly.
Pair Corralation between Pimco High and George Putnam
Assuming the 90 days horizon Pimco High Yield is expected to generate 0.31 times more return on investment than George Putnam. However, Pimco High Yield is 3.18 times less risky than George Putnam. It trades about 0.22 of its potential returns per unit of risk. George Putnam Balanced is currently generating about -0.06 per unit of risk. If you would invest 918.00 in Pimco High Yield on November 27, 2024 and sell it today you would earn a total of 6.00 from holding Pimco High Yield or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Pimco High Yield vs. George Putnam Balanced
Performance |
| Timeline |
| Pimco High Yield |
| George Putnam Balanced |
Pimco High and George Putnam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco High and George Putnam
The main advantage of trading using opposite Pimco High and George Putnam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco High position performs unexpectedly, George Putnam 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 George Putnam will offset losses from the drop in George Putnam's long position.| Pimco High vs. Pimco Short Asset | Pimco High vs. Pimco Em Fundamental | Pimco High vs. Pimco Long Term Credit | Pimco High vs. Pimco Moditiesplus Strategy |
| George Putnam vs. Putnam Equity Income | George Putnam vs. Putnam Tax Exempt | George Putnam vs. Putnam Floating Rate | George Putnam 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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