Correlation Between Putnam Diversified and Pgim Jennison
Can any of the company-specific risk be diversified away by investing in both Putnam Diversified and Pgim Jennison 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 Diversified and Pgim Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Diversified Income and Pgim Jennison Technology, you can compare the effects of market volatilities on Putnam Diversified and Pgim Jennison 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 Diversified with a short position of Pgim Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Diversified and Pgim Jennison.
Diversification Opportunities for Putnam Diversified and Pgim Jennison
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Putnam and Pgim is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Diversified Income and Pgim Jennison Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Jennison Technology and Putnam Diversified 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 Diversified Income are associated (or correlated) with Pgim Jennison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Jennison Technology has no effect on the direction of Putnam Diversified i.e., Putnam Diversified and Pgim Jennison go up and down completely randomly.
Pair Corralation between Putnam Diversified and Pgim Jennison
Assuming the 90 days horizon Putnam Diversified is expected to generate 9.51 times less return on investment than Pgim Jennison. But when comparing it to its historical volatility, Putnam Diversified Income is 5.99 times less risky than Pgim Jennison. It trades about 0.06 of its potential returns per unit of risk. Pgim Jennison Technology is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,251 in Pgim Jennison Technology on October 11, 2024 and sell it today you would earn a total of 1,332 from holding Pgim Jennison Technology or generate 106.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Diversified Income vs. Pgim Jennison Technology
Performance |
| Timeline |
| Putnam Diversified Income |
| Pgim Jennison Technology |
Putnam Diversified and Pgim Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Diversified and Pgim Jennison
The main advantage of trading using opposite Putnam Diversified and Pgim Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Diversified position performs unexpectedly, Pgim Jennison 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 Pgim Jennison will offset losses from the drop in Pgim Jennison's long position.| Putnam Diversified vs. Health Care Ultrasector | Putnam Diversified vs. Baron Health Care | Putnam Diversified vs. Baillie Gifford Health | Putnam Diversified vs. Invesco Global Health |
| Pgim Jennison vs. Stone Ridge Diversified | Pgim Jennison vs. Aqr Diversified Arbitrage | Pgim Jennison vs. Jhancock Diversified Macro | Pgim Jennison vs. Putnam Diversified Income |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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