Correlation Between Putnam Multi and Putnam Short
Can any of the company-specific risk be diversified away by investing in both Putnam Multi and Putnam Short 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 Short 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 Short Duration, you can compare the effects of market volatilities on Putnam Multi and Putnam Short 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 Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Multi and Putnam Short.
Diversification Opportunities for Putnam Multi and Putnam Short
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Putnam and Putnam is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Multi Cap Growth and Putnam Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Short Duration 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 Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Short Duration has no effect on the direction of Putnam Multi i.e., Putnam Multi and Putnam Short go up and down completely randomly.
Pair Corralation between Putnam Multi and Putnam Short
Assuming the 90 days horizon Putnam Multi Cap Growth is expected to generate 8.25 times more return on investment than Putnam Short. However, Putnam Multi is 8.25 times more volatile than Putnam Short Duration. It trades about 0.16 of its potential returns per unit of risk. Putnam Short Duration is currently generating about 0.14 per unit of risk. If you would invest 15,138 in Putnam Multi Cap Growth on August 31, 2024 and sell it today you would earn a total of 419.00 from holding Putnam Multi Cap Growth or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Multi Cap Growth vs. Putnam Short Duration
Performance |
| Timeline |
| Putnam Multi Cap |
| Putnam Short Duration |
Putnam Multi and Putnam Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Multi and Putnam Short
The main advantage of trading using opposite Putnam Multi and Putnam Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Multi position performs unexpectedly, Putnam Short 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 Short will offset losses from the drop in Putnam Short'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 Short vs. Virtus Global Real | Putnam Short vs. Allianzgi Mid Cap Fund | Putnam Short vs. Virtus Select Mlp | Putnam Short vs. Aquagold International |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |