Correlation Between Putnam Sustainable and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Putnam Sustainable 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 Putnam Sustainable and Putnam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Sustainable Future and Putnam Global Income, you can compare the effects of market volatilities on Putnam Sustainable 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 Putnam Sustainable with a short position of Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Sustainable and Putnam Global.
Diversification Opportunities for Putnam Sustainable and Putnam Global
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Putnam and Putnam is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Sustainable Future and Putnam Global Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Income and Putnam Sustainable 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 Sustainable Future 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 Income has no effect on the direction of Putnam Sustainable i.e., Putnam Sustainable and Putnam Global go up and down completely randomly.
Pair Corralation between Putnam Sustainable and Putnam Global
Assuming the 90 days horizon Putnam Sustainable Future is expected to under-perform the Putnam Global. In addition to that, Putnam Sustainable is 16.03 times more volatile than Putnam Global Income. It trades about -0.16 of its total potential returns per unit of risk. Putnam Global Income is currently generating about 0.26 per unit of volatility. If you would invest 1,006 in Putnam Global Income on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Putnam Global Income or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Sustainable Future vs. Putnam Global Income
Performance |
| Timeline |
| Putnam Sustainable Future |
| Putnam Global Income |
Putnam Sustainable and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Sustainable and Putnam Global
The main advantage of trading using opposite Putnam Sustainable and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Sustainable 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.| Putnam Sustainable vs. Dws Government Money | Putnam Sustainable vs. Intermediate Government Bond | Putnam Sustainable vs. Long Term Government Fund | Putnam Sustainable vs. Franklin Adjustable Government |
| Putnam Global vs. Putnam Equity Income | Putnam Global vs. Putnam Tax Exempt | Putnam Global vs. Putnam Floating Rate | Putnam Global vs. Putnam High Yield |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |