Correlation Between Putnam Multi and Putnam International
Can any of the company-specific risk be diversified away by investing in both Putnam Multi and Putnam International 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 Putnam International 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 Putnam International Equity, you can compare the effects of market volatilities on Putnam Multi and Putnam International 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 Putnam International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Multi and Putnam International.
Diversification Opportunities for Putnam Multi and Putnam International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Putnam and Putnam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Multi Cap Growth and Putnam International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam International 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 Growth are associated (or correlated) with Putnam International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam International has no effect on the direction of Putnam Multi i.e., Putnam Multi and Putnam International go up and down completely randomly.
Pair Corralation between Putnam Multi and Putnam International
Assuming the 90 days horizon Putnam Multi Cap Growth is expected to generate 0.99 times more return on investment than Putnam International. However, Putnam Multi Cap Growth is 1.01 times less risky than Putnam International. It trades about 0.09 of its potential returns per unit of risk. Putnam International Equity is currently generating about 0.06 per unit of risk. If you would invest 6,298 in Putnam Multi Cap Growth on September 12, 2024 and sell it today you would earn a total of 1,510 from holding Putnam Multi Cap Growth or generate 23.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Putnam Multi Cap Growth vs. Putnam International Equity
Performance |
| Timeline |
| Putnam Multi Cap |
| Putnam International |
Putnam Multi and Putnam International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Multi and Putnam International
The main advantage of trading using opposite Putnam Multi and Putnam International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Multi position performs unexpectedly, Putnam International 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 International will offset losses from the drop in Putnam International's long position.| Putnam Multi vs. Fidelity Capital Income | Putnam Multi vs. Buffalo High Yield | Putnam Multi vs. Voya High Yield | Putnam Multi vs. Pax High Yield |
| Putnam International vs. SCOR PK | Putnam International vs. Morningstar Unconstrained Allocation | Putnam International vs. Via Renewables | Putnam International vs. Bondbloxx ETF Trust |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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