Correlation Between Putnam Convertible and Bny Mellon
Can any of the company-specific risk be diversified away by investing in both Putnam Convertible and Bny Mellon 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 Bny Mellon 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 Bny Mellon Asset, you can compare the effects of market volatilities on Putnam Convertible and Bny Mellon 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 Bny Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Convertible and Bny Mellon.
Diversification Opportunities for Putnam Convertible and Bny Mellon
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Putnam and Bny is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Convertible Incm Gwth and Bny Mellon Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bny Mellon Asset 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 Bny Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bny Mellon Asset has no effect on the direction of Putnam Convertible i.e., Putnam Convertible and Bny Mellon go up and down completely randomly.
Pair Corralation between Putnam Convertible and Bny Mellon
Assuming the 90 days horizon Putnam Convertible Incm Gwth is expected to generate 1.04 times more return on investment than Bny Mellon. However, Putnam Convertible is 1.04 times more volatile than Bny Mellon Asset. It trades about 0.39 of its potential returns per unit of risk. Bny Mellon Asset is currently generating about 0.16 per unit of risk. If you would invest 2,480 in Putnam Convertible Incm Gwth on August 26, 2024 and sell it today you would earn a total of 123.00 from holding Putnam Convertible Incm Gwth or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Convertible Incm Gwth vs. Bny Mellon Asset
Performance |
| Timeline |
| Putnam Convertible Incm |
| Bny Mellon Asset |
Putnam Convertible and Bny Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Convertible and Bny Mellon
The main advantage of trading using opposite Putnam Convertible and Bny Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Convertible position performs unexpectedly, Bny Mellon 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 Bny Mellon will offset losses from the drop in Bny Mellon's long position.| Putnam Convertible vs. Siit Large Cap | Putnam Convertible vs. Pace Large Growth | Putnam Convertible vs. Alternative Asset Allocation | Putnam Convertible vs. Goldman Sachs Large |
| Bny Mellon vs. Invesco Vertible Securities | Bny Mellon vs. Fidelity Vertible Securities | Bny Mellon vs. Putnam Convertible Incm Gwth | Bny Mellon vs. Invesco Vertible Securities |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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