Correlation Between Putnam Income and Siit Emerging
Can any of the company-specific risk be diversified away by investing in both Putnam Income and Siit 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 Putnam Income and Siit Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Income Fund and Siit Emerging Markets, you can compare the effects of market volatilities on Putnam Income and Siit 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 Putnam Income with a short position of Siit Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Income and Siit Emerging.
Diversification Opportunities for Putnam Income and Siit Emerging
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Putnam and Siit is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Income Fund and Siit Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Emerging Markets and Putnam Income 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 Putnam Income Fund are associated (or correlated) with Siit Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Emerging Markets has no effect on the direction of Putnam Income i.e., Putnam Income and Siit Emerging go up and down completely randomly.
Pair Corralation between Putnam Income and Siit Emerging
Assuming the 90 days horizon Putnam Income is expected to generate 2.12 times less return on investment than Siit Emerging. But when comparing it to its historical volatility, Putnam Income Fund is 1.96 times less risky than Siit Emerging. It trades about 0.08 of its potential returns per unit of risk. Siit Emerging Markets is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 840.00 in Siit Emerging Markets on September 12, 2024 and sell it today you would earn a total of 181.00 from holding Siit Emerging Markets or generate 21.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Income Fund vs. Siit Emerging Markets
Performance |
| Timeline |
| Putnam Income |
| Siit Emerging Markets |
Putnam Income and Siit Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Income and Siit Emerging
The main advantage of trading using opposite Putnam Income and Siit Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Income position performs unexpectedly, Siit 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 Siit Emerging will offset losses from the drop in Siit Emerging's long position.| Putnam Income vs. Siit Emerging Markets | Putnam Income vs. Transamerica Emerging Markets | Putnam Income vs. Pnc Emerging Markets | Putnam Income vs. Artisan Emerging Markets |
| Siit Emerging vs. American Funds New | Siit Emerging vs. SCOR PK | Siit Emerging vs. Morningstar Unconstrained Allocation | Siit Emerging vs. Via Renewables |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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