Correlation Between Putnam Convertible and International Growth
Can any of the company-specific risk be diversified away by investing in both Putnam Convertible and International Growth 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 International Growth 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 International Growth Fund, you can compare the effects of market volatilities on Putnam Convertible and International Growth 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 International Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Convertible and International Growth.
Diversification Opportunities for Putnam Convertible and International Growth
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Putnam and International is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Convertible Incm Gwth and International Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 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 International Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Growth has no effect on the direction of Putnam Convertible i.e., Putnam Convertible and International Growth go up and down completely randomly.
Pair Corralation between Putnam Convertible and International Growth
Assuming the 90 days horizon Putnam Convertible Incm Gwth is expected to generate 0.75 times more return on investment than International Growth. However, Putnam Convertible Incm Gwth is 1.34 times less risky than International Growth. It trades about 0.48 of its potential returns per unit of risk. International Growth Fund is currently generating about 0.12 per unit of risk. If you would invest 2,478 in Putnam Convertible Incm Gwth on September 4, 2024 and sell it today you would earn a total of 139.00 from holding Putnam Convertible Incm Gwth or generate 5.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Convertible Incm Gwth vs. International Growth Fund
Performance |
| Timeline |
| Putnam Convertible Incm |
| International Growth |
Putnam Convertible and International Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Convertible and International Growth
The main advantage of trading using opposite Putnam Convertible and International Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Convertible position performs unexpectedly, International Growth 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 International Growth will offset losses from the drop in International Growth's long position.| Putnam Convertible vs. Aig Government Money | Putnam Convertible vs. Fidelity Series Government | Putnam Convertible vs. Us Government Securities | Putnam Convertible vs. Lord Abbett Government |
| International Growth vs. Mondrian Emerging Markets | International Growth vs. Jpmorgan Emerging Markets | International Growth vs. T Rowe Price | International Growth vs. Black Oak Emerging |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |