Correlation Between Putnam International and Putnam Ultra
Can any of the company-specific risk be diversified away by investing in both Putnam International and Putnam Ultra 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 International and Putnam Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam International Equity and Putnam Ultra Short, you can compare the effects of market volatilities on Putnam International and Putnam Ultra 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 International with a short position of Putnam Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam International and Putnam Ultra.
Diversification Opportunities for Putnam International and Putnam Ultra
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Putnam and Putnam is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Putnam International Equity and Putnam Ultra Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Ultra Short and Putnam International 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 International Equity are associated (or correlated) with Putnam Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Ultra Short has no effect on the direction of Putnam International i.e., Putnam International and Putnam Ultra go up and down completely randomly.
Pair Corralation between Putnam International and Putnam Ultra
If you would invest 1,007 in Putnam Ultra Short on August 28, 2024 and sell it today you would earn a total of 3.00 from holding Putnam Ultra Short or generate 0.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Putnam International Equity vs. Putnam Ultra Short
Performance |
Timeline |
Putnam International |
Putnam Ultra Short |
Putnam International and Putnam Ultra Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Putnam International and Putnam Ultra
The main advantage of trading using opposite Putnam International and Putnam Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam International position performs unexpectedly, Putnam Ultra 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 Ultra will offset losses from the drop in Putnam Ultra's long position.Putnam International vs. Putnam Equity Income | Putnam International vs. Putnam Tax Exempt | Putnam International vs. Putnam Floating Rate | Putnam International vs. Putnam High Yield |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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