Correlation Between Putnam Panagora and Polar Capital
Can any of the company-specific risk be diversified away by investing in both Putnam Panagora and Polar Capital 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 Polar Capital 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 Polar Capital Emerging, you can compare the effects of market volatilities on Putnam Panagora and Polar Capital 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 Polar Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Panagora and Polar Capital.
Diversification Opportunities for Putnam Panagora and Polar Capital
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Putnam and Polar is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Panagora Risk and Polar Capital Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polar Capital Emerging 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 Polar Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polar Capital Emerging has no effect on the direction of Putnam Panagora i.e., Putnam Panagora and Polar Capital go up and down completely randomly.
Pair Corralation between Putnam Panagora and Polar Capital
If you would invest 737.00 in Polar Capital Emerging on August 26, 2024 and sell it today you would earn a total of 95.00 from holding Polar Capital Emerging or generate 12.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Putnam Panagora Risk vs. Polar Capital Emerging
Performance |
| Timeline |
| Putnam Panagora Risk |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Polar Capital Emerging |
Putnam Panagora and Polar Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Panagora and Polar Capital
The main advantage of trading using opposite Putnam Panagora and Polar Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Panagora position performs unexpectedly, Polar Capital 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 Polar Capital will offset losses from the drop in Polar Capital'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 |
| Polar Capital vs. Polar Capital Emerging | Polar Capital vs. Thrivent Moderate Allocation | Polar Capital vs. Vanguard Growth Index | Polar Capital vs. Fidelity Fund Fidelity |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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