Correlation Between Putnam Growth and Columbia Global
Can any of the company-specific risk be diversified away by investing in both Putnam Growth and Columbia 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 Growth and Columbia Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Growth Opportunities and Columbia Global Technology, you can compare the effects of market volatilities on Putnam Growth and Columbia 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 Growth with a short position of Columbia Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Growth and Columbia Global.
Diversification Opportunities for Putnam Growth and Columbia Global
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Putnam and Columbia is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Growth Opportunities and Columbia Global Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Global Tech and Putnam Growth 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 Growth Opportunities are associated (or correlated) with Columbia Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Global Tech has no effect on the direction of Putnam Growth i.e., Putnam Growth and Columbia Global go up and down completely randomly.
Pair Corralation between Putnam Growth and Columbia Global
Assuming the 90 days horizon Putnam Growth Opportunities is expected to generate 0.87 times more return on investment than Columbia Global. However, Putnam Growth Opportunities is 1.14 times less risky than Columbia Global. It trades about 0.11 of its potential returns per unit of risk. Columbia Global Technology is currently generating about 0.08 per unit of risk. If you would invest 6,918 in Putnam Growth Opportunities on August 27, 2024 and sell it today you would earn a total of 172.00 from holding Putnam Growth Opportunities or generate 2.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Growth Opportunities vs. Columbia Global Technology
Performance |
| Timeline |
| Putnam Growth Opport |
| Columbia Global Tech |
Putnam Growth and Columbia Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Growth and Columbia Global
The main advantage of trading using opposite Putnam Growth and Columbia Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Growth position performs unexpectedly, Columbia 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 Columbia Global will offset losses from the drop in Columbia Global's long position.| Putnam Growth vs. George Putnam Fund | Putnam Growth vs. Putnam Dynamic Asset | Putnam Growth vs. Aquagold International | Putnam Growth vs. Morningstar Unconstrained Allocation |
| Columbia Global vs. Putnam Global Technology | Columbia Global vs. Blackrock Science Technology | Columbia Global vs. Columbia Global Technology | Columbia Global vs. Columbia Seligman Global |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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