Correlation Between Putnam Multi and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Putnam Multi 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 Multi 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 Multi Cap Growth and Putnam Global Income, you can compare the effects of market volatilities on Putnam Multi 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 Multi with a short position of Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Multi and Putnam Global.
Diversification Opportunities for Putnam Multi and Putnam Global
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Putnam and Putnam is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Multi Cap Growth 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 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 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 Multi i.e., Putnam Multi and Putnam Global go up and down completely randomly.
Pair Corralation between Putnam Multi and Putnam Global
Assuming the 90 days horizon Putnam Multi Cap Growth is expected to under-perform the Putnam Global. In addition to that, Putnam Multi is 11.09 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 Multi Cap Growth vs. Putnam Global Income
Performance |
| Timeline |
| Putnam Multi Cap |
| Putnam Global Income |
Putnam Multi and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Multi and Putnam Global
The main advantage of trading using opposite Putnam Multi and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Multi 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 Multi vs. Putnam International Equity | Putnam Multi vs. George Putnam Fund | Putnam Multi vs. Putnam Dynamic Asset | Putnam Multi vs. Putnam Dynamic Asset |
| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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