Correlation Between Putnam Multi-cap and Putnam International
Can any of the company-specific risk be diversified away by investing in both Putnam Multi-cap 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-cap 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 Capital, you can compare the effects of market volatilities on Putnam Multi-cap 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-cap with a short position of Putnam International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Multi-cap and Putnam International.
Diversification Opportunities for Putnam Multi-cap and Putnam International
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Putnam and Putnam is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Multi Cap Growth and Putnam International Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam International 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 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-cap i.e., Putnam Multi-cap and Putnam International go up and down completely randomly.
Pair Corralation between Putnam Multi-cap and Putnam International
Assuming the 90 days horizon Putnam Multi Cap Growth is expected to generate 1.04 times more return on investment than Putnam International. However, Putnam Multi-cap is 1.04 times more volatile than Putnam International Capital. It trades about 0.15 of its potential returns per unit of risk. Putnam International Capital is currently generating about -0.16 per unit of risk. If you would invest 13,314 in Putnam Multi Cap Growth on September 3, 2024 and sell it today you would earn a total of 593.00 from holding Putnam Multi Cap Growth or generate 4.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Multi Cap Growth vs. Putnam International Capital
Performance |
| Timeline |
| Putnam Multi Cap |
| Putnam International |
Putnam Multi-cap and Putnam International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Multi-cap and Putnam International
The main advantage of trading using opposite Putnam Multi-cap and Putnam International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Multi-cap 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-cap vs. Semiconductor Ultrasector Profund | Putnam Multi-cap vs. Volumetric Fund Volumetric | Putnam Multi-cap vs. Omni Small Cap Value | Putnam Multi-cap vs. Nasdaq 100 Fund Class |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stocks Directory Find actively traded stocks across global markets |