Correlation Between Putnam Convertible and Sit International
Can any of the company-specific risk be diversified away by investing in both Putnam Convertible and Sit International 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 Sit International 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 Sit International Growth, you can compare the effects of market volatilities on Putnam Convertible and Sit International 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 Sit International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Convertible and Sit International.
Diversification Opportunities for Putnam Convertible and Sit International
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Putnam and Sit is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Convertible Incm Gwth and Sit International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit International Growth 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 Sit International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit International Growth has no effect on the direction of Putnam Convertible i.e., Putnam Convertible and Sit International go up and down completely randomly.
Pair Corralation between Putnam Convertible and Sit International
Assuming the 90 days horizon Putnam Convertible Incm Gwth is expected to generate 0.65 times more return on investment than Sit International. However, Putnam Convertible Incm Gwth is 1.53 times less risky than Sit International. It trades about 0.12 of its potential returns per unit of risk. Sit International Growth is currently generating about 0.05 per unit of risk. If you would invest 2,235 in Putnam Convertible Incm Gwth on September 14, 2024 and sell it today you would earn a total of 358.00 from holding Putnam Convertible Incm Gwth or generate 16.02% 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. Sit International Growth
Performance |
| Timeline |
| Putnam Convertible Incm |
| Sit International Growth |
Putnam Convertible and Sit International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Convertible and Sit International
The main advantage of trading using opposite Putnam Convertible and Sit International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Convertible position performs unexpectedly, Sit International 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 Sit International will offset losses from the drop in Sit International's 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 |
| Sit International vs. Schwab Treasury Inflation | Sit International vs. Short Duration Inflation | Sit International vs. Guggenheim Managed Futures | Sit International vs. Ab Bond Inflation |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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