Correlation Between Putnam Managed and Gabelli Equity
Can any of the company-specific risk be diversified away by investing in both Putnam Managed and Gabelli Equity 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 Managed and Gabelli Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Managed Municipal and The Gabelli Equity, you can compare the effects of market volatilities on Putnam Managed and Gabelli Equity 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 Managed with a short position of Gabelli Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Managed and Gabelli Equity.
Diversification Opportunities for Putnam Managed and Gabelli Equity
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Putnam and Gabelli is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Managed Municipal and The Gabelli Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Equity and Putnam Managed 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 Managed Municipal are associated (or correlated) with Gabelli Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Equity has no effect on the direction of Putnam Managed i.e., Putnam Managed and Gabelli Equity go up and down completely randomly.
Pair Corralation between Putnam Managed and Gabelli Equity
Considering the 90-day investment horizon Putnam Managed Municipal is expected to generate 1.09 times more return on investment than Gabelli Equity. However, Putnam Managed is 1.09 times more volatile than The Gabelli Equity. It trades about 0.12 of its potential returns per unit of risk. The Gabelli Equity is currently generating about -0.05 per unit of risk. If you would invest 624.00 in Putnam Managed Municipal on August 31, 2024 and sell it today you would earn a total of 12.00 from holding Putnam Managed Municipal or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Managed Municipal vs. The Gabelli Equity
Performance |
| Timeline |
| Putnam Managed Municipal |
| Gabelli Equity |
Putnam Managed and Gabelli Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Managed and Gabelli Equity
The main advantage of trading using opposite Putnam Managed and Gabelli Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Managed position performs unexpectedly, Gabelli Equity 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 Gabelli Equity will offset losses from the drop in Gabelli Equity's long position.| Putnam Managed vs. MFS Investment Grade | Putnam Managed vs. Eaton Vance National | Putnam Managed vs. Blackrock Munivest | Putnam Managed vs. DTF Tax Free |
| Gabelli Equity vs. The Gabelli Equity | Gabelli Equity vs. Virtus AllianzGI Convertible | Gabelli Equity vs. Oxford Lane Capital | Gabelli Equity vs. The Gabelli Utility |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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