Correlation Between Putnam Convertible and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Putnam Convertible and Putnam Global 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 Putnam Global 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 Putnam Global Health, you can compare the effects of market volatilities on Putnam Convertible and Putnam Global 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 Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Convertible and Putnam Global.
Diversification Opportunities for Putnam Convertible and Putnam Global
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Putnam and Putnam is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Convertible Incm Gwth and Putnam Global Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Health 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 Putnam Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Global Health has no effect on the direction of Putnam Convertible i.e., Putnam Convertible and Putnam Global go up and down completely randomly.
Pair Corralation between Putnam Convertible and Putnam Global
Assuming the 90 days horizon Putnam Convertible Incm Gwth is expected to generate 0.75 times more return on investment than Putnam Global. However, Putnam Convertible Incm Gwth is 1.34 times less risky than Putnam Global. It trades about 0.35 of its potential returns per unit of risk. Putnam Global Health is currently generating about -0.27 per unit of risk. If you would invest 2,494 in Putnam Convertible Incm Gwth on August 28, 2024 and sell it today you would earn a total of 109.00 from holding Putnam Convertible Incm Gwth or generate 4.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Convertible Incm Gwth vs. Putnam Global Health
Performance |
| Timeline |
| Putnam Convertible Incm |
| Putnam Global Health |
Putnam Convertible and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Convertible and Putnam Global
The main advantage of trading using opposite Putnam Convertible and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Convertible position performs unexpectedly, Putnam Global 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 Putnam Global will offset losses from the drop in Putnam Global's long position.| Putnam Convertible vs. Pia High Yield | Putnam Convertible vs. Pace High Yield | Putnam Convertible vs. Virtus High Yield | Putnam Convertible vs. American Century High |
| Putnam Global vs. Putnam Equity Income | Putnam Global vs. Putnam Tax Exempt | Putnam Global vs. Putnam Floating Rate | Putnam Global vs. Putnam High Yield |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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