Correlation Between Putnam Multi and Ftfa Franklin
Can any of the company-specific risk be diversified away by investing in both Putnam Multi and Ftfa Franklin 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 Multi and Ftfa Franklin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Multi Cap Value and Ftfa Franklin Templeton Growth, you can compare the effects of market volatilities on Putnam Multi and Ftfa Franklin 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 Multi with a short position of Ftfa Franklin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Multi and Ftfa Franklin.
Diversification Opportunities for Putnam Multi and Ftfa Franklin
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Putnam and Ftfa is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Multi Cap Value and Ftfa Franklin Templeton Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ftfa Franklin Templeton and Putnam Multi 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 Multi Cap Value are associated (or correlated) with Ftfa Franklin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ftfa Franklin Templeton has no effect on the direction of Putnam Multi i.e., Putnam Multi and Ftfa Franklin go up and down completely randomly.
Pair Corralation between Putnam Multi and Ftfa Franklin
Assuming the 90 days horizon Putnam Multi Cap Value is expected to generate 1.53 times more return on investment than Ftfa Franklin. However, Putnam Multi is 1.53 times more volatile than Ftfa Franklin Templeton Growth. It trades about 0.11 of its potential returns per unit of risk. Ftfa Franklin Templeton Growth is currently generating about 0.14 per unit of risk. If you would invest 1,852 in Putnam Multi Cap Value on September 4, 2024 and sell it today you would earn a total of 538.00 from holding Putnam Multi Cap Value or generate 29.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Multi Cap Value vs. Ftfa Franklin Templeton Growth
Performance |
| Timeline |
| Putnam Multi Cap |
| Ftfa Franklin Templeton |
Putnam Multi and Ftfa Franklin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Multi and Ftfa Franklin
The main advantage of trading using opposite Putnam Multi and Ftfa Franklin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Multi position performs unexpectedly, Ftfa Franklin 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 Ftfa Franklin will offset losses from the drop in Ftfa Franklin's long position.| Putnam Multi vs. Ftfa Franklin Templeton Growth | Putnam Multi vs. Qs Growth Fund | Putnam Multi vs. Smallcap Growth Fund | Putnam Multi vs. Small Pany Growth |
| Ftfa Franklin vs. Franklin Mutual Beacon | Ftfa Franklin vs. Templeton Developing Markets | Ftfa Franklin vs. Franklin Mutual Global | Ftfa Franklin vs. Franklin Mutual Global |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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