Correlation Between Putnam Convertible and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Putnam Convertible and Cohen Steers 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 Cohen Steers 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 Cohen Steers Realty, you can compare the effects of market volatilities on Putnam Convertible and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Convertible and Cohen Steers.
Diversification Opportunities for Putnam Convertible and Cohen Steers
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Putnam and Cohen is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Convertible Incm Gwth and Cohen Steers Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Realty 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Realty has no effect on the direction of Putnam Convertible i.e., Putnam Convertible and Cohen Steers go up and down completely randomly.
Pair Corralation between Putnam Convertible and Cohen Steers
Assuming the 90 days horizon Putnam Convertible is expected to generate 1.05 times less return on investment than Cohen Steers. But when comparing it to its historical volatility, Putnam Convertible Incm Gwth is 1.83 times less risky than Cohen Steers. It trades about 0.15 of its potential returns per unit of risk. Cohen Steers Realty is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 5,921 in Cohen Steers Realty on September 2, 2024 and sell it today you would earn a total of 1,322 from holding Cohen Steers Realty or generate 22.33% 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. Cohen Steers Realty
Performance |
| Timeline |
| Putnam Convertible Incm |
| Cohen Steers Realty |
Putnam Convertible and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Convertible and Cohen Steers
The main advantage of trading using opposite Putnam Convertible and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Convertible position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Putnam Convertible vs. Qs Small Capitalization | Putnam Convertible vs. Baird Smallmid Cap | Putnam Convertible vs. Ab Small Cap | Putnam Convertible vs. T Rowe Price |
| Cohen Steers vs. Columbia Vertible Securities | Cohen Steers vs. Rationalpier 88 Convertible | Cohen Steers vs. Fidelity Sai Convertible | Cohen Steers vs. Putnam Convertible Incm Gwth |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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