Correlation Between Putnam Convertible and Global Gold
Can any of the company-specific risk be diversified away by investing in both Putnam Convertible and Global Gold 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 Convertible and Global Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Convertible Incm Gwth and Global Gold Fund, you can compare the effects of market volatilities on Putnam Convertible and Global Gold 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 Convertible with a short position of Global Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Convertible and Global Gold.
Diversification Opportunities for Putnam Convertible and Global Gold
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Putnam and Global is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Convertible Incm Gwth and Global Gold Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Gold Fund and Putnam Convertible 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 Convertible Incm Gwth are associated (or correlated) with Global Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Gold Fund has no effect on the direction of Putnam Convertible i.e., Putnam Convertible and Global Gold go up and down completely randomly.
Pair Corralation between Putnam Convertible and Global Gold
Assuming the 90 days horizon Putnam Convertible Incm Gwth is expected to under-perform the Global Gold. But the mutual fund apears to be less risky and, when comparing its historical volatility, Putnam Convertible Incm Gwth is 3.44 times less risky than Global Gold. The mutual fund trades about 0.0 of its potential returns per unit of risk. The Global Gold Fund is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,332 in Global Gold Fund on September 12, 2024 and sell it today you would earn a total of 33.00 from holding Global Gold Fund or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Convertible Incm Gwth vs. Global Gold Fund
Performance |
| Timeline |
| Putnam Convertible Incm |
| Global Gold Fund |
Putnam Convertible and Global Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Convertible and Global Gold
The main advantage of trading using opposite Putnam Convertible and Global Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Convertible position performs unexpectedly, Global Gold 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 Global Gold will offset losses from the drop in Global Gold's long position.| Putnam Convertible vs. Sp Midcap Index | Putnam Convertible vs. Pnc Emerging Markets | Putnam Convertible vs. Ep Emerging Markets | Putnam Convertible vs. Ab All Market |
| Global Gold vs. Sa Worldwide Moderate | Global Gold vs. Putnman Retirement Ready | Global Gold vs. Pro Blend Moderate Term | Global Gold vs. Franklin Lifesmart Retirement |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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