Correlation Between Putnam Short and Leuthold Select
Can any of the company-specific risk be diversified away by investing in both Putnam Short and Leuthold Select 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 Short and Leuthold Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Short Duration and Leuthold Select Industries, you can compare the effects of market volatilities on Putnam Short and Leuthold Select 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 Short with a short position of Leuthold Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Short and Leuthold Select.
Diversification Opportunities for Putnam Short and Leuthold Select
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Putnam and Leuthold is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Short Duration and Leuthold Select Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leuthold Select Indu and Putnam Short 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 Short Duration are associated (or correlated) with Leuthold Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leuthold Select Indu has no effect on the direction of Putnam Short i.e., Putnam Short and Leuthold Select go up and down completely randomly.
Pair Corralation between Putnam Short and Leuthold Select
Assuming the 90 days horizon Putnam Short Duration is expected to generate 0.04 times more return on investment than Leuthold Select. However, Putnam Short Duration is 26.98 times less risky than Leuthold Select. It trades about 0.12 of its potential returns per unit of risk. Leuthold Select Industries is currently generating about -0.08 per unit of risk. If you would invest 1,006 in Putnam Short Duration on September 14, 2024 and sell it today you would earn a total of 6.00 from holding Putnam Short Duration or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Short Duration vs. Leuthold Select Industries
Performance |
| Timeline |
| Putnam Short Duration |
| Leuthold Select Indu |
Putnam Short and Leuthold Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Short and Leuthold Select
The main advantage of trading using opposite Putnam Short and Leuthold Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Short position performs unexpectedly, Leuthold Select 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 Leuthold Select will offset losses from the drop in Leuthold Select's long position.| Putnam Short vs. Putnam Equity Income | Putnam Short vs. Putnam Tax Exempt | Putnam Short vs. Putnam Floating Rate | Putnam Short vs. Putnam High Yield |
| Leuthold Select vs. Stone Ridge Diversified | Leuthold Select vs. Wealthbuilder Conservative Allocation | Leuthold Select vs. Tax Free Conservative Income | Leuthold Select vs. Calvert Conservative Allocation |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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