Correlation Between Putnam Small and Wpg Partners
Can any of the company-specific risk be diversified away by investing in both Putnam Small and Wpg Partners 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 Small and Wpg Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Small Cap and Wpg Partners Smallmicro, you can compare the effects of market volatilities on Putnam Small and Wpg Partners 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 Small with a short position of Wpg Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Small and Wpg Partners.
Diversification Opportunities for Putnam Small and Wpg Partners
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Putnam and Wpg is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Small Cap and Wpg Partners Smallmicro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wpg Partners Smallmicro and Putnam Small 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 Small Cap are associated (or correlated) with Wpg Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wpg Partners Smallmicro has no effect on the direction of Putnam Small i.e., Putnam Small and Wpg Partners go up and down completely randomly.
Pair Corralation between Putnam Small and Wpg Partners
If you would invest 1,540 in Putnam Small Cap on October 20, 2024 and sell it today you would earn a total of 56.00 from holding Putnam Small Cap or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 5.0% |
| Values | Daily Returns |
Putnam Small Cap vs. Wpg Partners Smallmicro
Performance |
| Timeline |
| Putnam Small Cap |
| Wpg Partners Smallmicro |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Putnam Small and Wpg Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Small and Wpg Partners
The main advantage of trading using opposite Putnam Small and Wpg Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Small position performs unexpectedly, Wpg Partners 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 Wpg Partners will offset losses from the drop in Wpg Partners' long position.| Putnam Small vs. The Hartford Healthcare | Putnam Small vs. Prudential Health Sciences | Putnam Small vs. Lord Abbett Health | Putnam Small vs. Fidelity Advisor Health |
| Wpg Partners vs. Mid Cap Growth | Wpg Partners vs. T Rowe Price | Wpg Partners vs. Rational Defensive Growth | Wpg Partners vs. T Rowe Price |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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