Correlation Between Putnam Panagora and Lifex Income
Can any of the company-specific risk be diversified away by investing in both Putnam Panagora and Lifex Income 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 Panagora and Lifex Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Panagora Risk and Lifex Income, you can compare the effects of market volatilities on Putnam Panagora and Lifex Income 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 Panagora with a short position of Lifex Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Panagora and Lifex Income.
Diversification Opportunities for Putnam Panagora and Lifex Income
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Putnam and Lifex is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Panagora Risk and Lifex Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifex Income and Putnam Panagora 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 Panagora Risk are associated (or correlated) with Lifex Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifex Income has no effect on the direction of Putnam Panagora i.e., Putnam Panagora and Lifex Income go up and down completely randomly.
Pair Corralation between Putnam Panagora and Lifex Income
Assuming the 90 days horizon Putnam Panagora is expected to generate 1.68 times less return on investment than Lifex Income. But when comparing it to its historical volatility, Putnam Panagora Risk is 1.55 times less risky than Lifex Income. It trades about 0.04 of its potential returns per unit of risk. Lifex Income is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,714 in Lifex Income on August 26, 2024 and sell it today you would earn a total of 92.00 from holding Lifex Income or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 16.96% |
| Values | Daily Returns |
Putnam Panagora Risk vs. Lifex Income
Performance |
| Timeline |
| Putnam Panagora Risk |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lifex Income |
Putnam Panagora and Lifex Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Panagora and Lifex Income
The main advantage of trading using opposite Putnam Panagora and Lifex Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Panagora position performs unexpectedly, Lifex Income 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 Lifex Income will offset losses from the drop in Lifex Income's long position.| Putnam Panagora vs. Pace High Yield | Putnam Panagora vs. Goldman Sachs High | Putnam Panagora vs. Ab High Income | Putnam Panagora vs. Pioneer High Income |
| Lifex Income vs. Lifex Inflation Protected Income | Lifex Income vs. Lifex Inflation Protected Income | Lifex Income vs. Lifex Inflation Protected Income | Lifex Income vs. Lifex Inflation Protected Income |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |