Correlation Between Pender Real and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Pender Real and Putnam Global 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 Pender Real and Putnam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pender Real Estate and Putnam Global Health, you can compare the effects of market volatilities on Pender Real and Putnam Global 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 Pender Real with a short position of Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pender Real and Putnam Global.
Diversification Opportunities for Pender Real and Putnam Global
-0.94 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pender and Putnam is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding Pender Real Estate and Putnam Global Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Health and Pender Real 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 Pender Real Estate are associated (or correlated) with Putnam Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Global Health has no effect on the direction of Pender Real i.e., Pender Real and Putnam Global go up and down completely randomly.
Pair Corralation between Pender Real and Putnam Global
Assuming the 90 days horizon Pender Real Estate is expected to generate 0.18 times more return on investment than Putnam Global. However, Pender Real Estate is 5.68 times less risky than Putnam Global. It trades about -0.03 of its potential returns per unit of risk. Putnam Global Health is currently generating about -0.03 per unit of risk. If you would invest 1,004 in Pender Real Estate on September 1, 2024 and sell it today you would lose (1.00) from holding Pender Real Estate or give up 0.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Pender Real Estate vs. Putnam Global Health
Performance |
| Timeline |
| Pender Real Estate |
| Putnam Global Health |
Pender Real and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pender Real and Putnam Global
The main advantage of trading using opposite Pender Real and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pender Real position performs unexpectedly, Putnam Global 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 Putnam Global will offset losses from the drop in Putnam Global's long position.| Pender Real vs. Dreyfus Government Cash | Pender Real vs. Us Government Securities | Pender Real vs. Franklin Adjustable Government | Pender Real vs. Aig Government Money |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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