Correlation Between Putnam Multi-cap and Polen Global
Can any of the company-specific risk be diversified away by investing in both Putnam Multi-cap and Polen 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 Putnam Multi-cap and Polen Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Multi Cap Growth and Polen Global Growth, you can compare the effects of market volatilities on Putnam Multi-cap and Polen 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 Putnam Multi-cap with a short position of Polen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Multi-cap and Polen Global.
Diversification Opportunities for Putnam Multi-cap and Polen Global
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Putnam and Polen is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Multi Cap Growth and Polen Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polen Global Growth and Putnam Multi-cap 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 Growth are associated (or correlated) with Polen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polen Global Growth has no effect on the direction of Putnam Multi-cap i.e., Putnam Multi-cap and Polen Global go up and down completely randomly.
Pair Corralation between Putnam Multi-cap and Polen Global
If you would invest 2,666 in Polen Global Growth on August 30, 2024 and sell it today you would earn a total of 143.00 from holding Polen Global Growth or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Putnam Multi Cap Growth vs. Polen Global Growth
Performance |
| Timeline |
| Putnam Multi Cap |
| Polen Global Growth |
Putnam Multi-cap and Polen Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Multi-cap and Polen Global
The main advantage of trading using opposite Putnam Multi-cap and Polen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Multi-cap position performs unexpectedly, Polen 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 Polen Global will offset losses from the drop in Polen Global's long position.| Putnam Multi-cap vs. Putnam International Equity | Putnam Multi-cap vs. George Putnam Fund | Putnam Multi-cap vs. Putnam Dynamic Asset | Putnam Multi-cap vs. Putnam Dynamic Asset |
| Polen Global vs. Polen Growth Fund | Polen Global vs. Baron Global Advantage | Polen Global vs. Polen Growth Fund | Polen Global vs. Hennessy Japan Fund |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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