Correlation Between Putnam Convertible and Gmo Resources
Can any of the company-specific risk be diversified away by investing in both Putnam Convertible and Gmo Resources 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 Gmo Resources 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 Gmo Resources Series, you can compare the effects of market volatilities on Putnam Convertible and Gmo Resources 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 Gmo Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Convertible and Gmo Resources.
Diversification Opportunities for Putnam Convertible and Gmo Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Putnam and Gmo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Convertible Incm Gwth and Gmo Resources Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gmo Resources Series 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 Gmo Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gmo Resources Series has no effect on the direction of Putnam Convertible i.e., Putnam Convertible and Gmo Resources go up and down completely randomly.
Pair Corralation between Putnam Convertible and Gmo Resources
If you would invest 2,573 in Putnam Convertible Incm Gwth on September 13, 2024 and sell it today you would earn a total of 20.00 from holding Putnam Convertible Incm Gwth or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Putnam Convertible Incm Gwth vs. Gmo Resources Series
Performance |
| Timeline |
| Putnam Convertible Incm |
| Gmo Resources Series |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Putnam Convertible and Gmo Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Convertible and Gmo Resources
The main advantage of trading using opposite Putnam Convertible and Gmo Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Convertible position performs unexpectedly, Gmo Resources 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 Gmo Resources will offset losses from the drop in Gmo Resources' long position.| Putnam Convertible vs. Gamco Natural Resources | Putnam Convertible vs. Alpsalerian Energy Infrastructure | Putnam Convertible vs. Oil Gas Ultrasector | Putnam Convertible vs. Energy Basic Materials |
| Gmo Resources vs. Ftfa Franklin Templeton Growth | Gmo Resources vs. Praxis Growth Index | Gmo Resources vs. Franklin Growth Opportunities | Gmo Resources vs. Vy Baron Growth |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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