Correlation Between Putnam Panagora and Lifex Inflation-protec
Can any of the company-specific risk be diversified away by investing in both Putnam Panagora and Lifex Inflation-protec 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 Inflation-protec 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 Inflation Protected Income, you can compare the effects of market volatilities on Putnam Panagora and Lifex Inflation-protec 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 Inflation-protec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Panagora and Lifex Inflation-protec.
Diversification Opportunities for Putnam Panagora and Lifex Inflation-protec
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Putnam and Lifex is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Panagora Risk and Lifex Inflation Protected Inco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifex Inflation-protec 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 Inflation-protec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifex Inflation-protec has no effect on the direction of Putnam Panagora i.e., Putnam Panagora and Lifex Inflation-protec go up and down completely randomly.
Pair Corralation between Putnam Panagora and Lifex Inflation-protec
Assuming the 90 days horizon Putnam Panagora Risk is expected to generate 0.96 times more return on investment than Lifex Inflation-protec. However, Putnam Panagora Risk is 1.04 times less risky than Lifex Inflation-protec. It trades about 0.08 of its potential returns per unit of risk. Lifex Inflation Protected Income is currently generating about 0.06 per unit of risk. If you would invest 738.00 in Putnam Panagora Risk on August 30, 2024 and sell it today you would earn a total of 7.00 from holding Putnam Panagora Risk or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 15.53% |
| Values | Daily Returns |
Putnam Panagora Risk vs. Lifex Inflation Protected Inco
Performance |
| Timeline |
| Putnam Panagora Risk |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lifex Inflation-protec |
Putnam Panagora and Lifex Inflation-protec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Panagora and Lifex Inflation-protec
The main advantage of trading using opposite Putnam Panagora and Lifex Inflation-protec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Panagora position performs unexpectedly, Lifex Inflation-protec 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 Inflation-protec will offset losses from the drop in Lifex Inflation-protec's long position.| Putnam Panagora vs. California High Yield Municipal | Putnam Panagora vs. Copeland Risk Managed | Putnam Panagora vs. Pace High Yield | Putnam Panagora vs. Siit High Yield |
| Lifex Inflation-protec vs. MFS Investment Grade | Lifex Inflation-protec vs. Eaton Vance National | Lifex Inflation-protec vs. Nuveen California Select | Lifex Inflation-protec vs. Federated Premier Municipal |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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