Correlation Between Growth Strategy and Putnam U
Can any of the company-specific risk be diversified away by investing in both Growth Strategy and Putnam U 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 Growth Strategy and Putnam U into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Strategy Fund and Putnam U S, you can compare the effects of market volatilities on Growth Strategy and Putnam U 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 Growth Strategy with a short position of Putnam U. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Strategy and Putnam U.
Diversification Opportunities for Growth Strategy and Putnam U
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GROWTH and Putnam is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Growth Strategy Fund and Putnam U S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam U S and Growth Strategy 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 Growth Strategy Fund are associated (or correlated) with Putnam U. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam U S has no effect on the direction of Growth Strategy i.e., Growth Strategy and Putnam U go up and down completely randomly.
Pair Corralation between Growth Strategy and Putnam U
Assuming the 90 days horizon Growth Strategy Fund is expected to generate 1.35 times more return on investment than Putnam U. However, Growth Strategy is 1.35 times more volatile than Putnam U S. It trades about 0.15 of its potential returns per unit of risk. Putnam U S is currently generating about 0.07 per unit of risk. If you would invest 1,313 in Growth Strategy Fund on August 31, 2024 and sell it today you would earn a total of 25.00 from holding Growth Strategy Fund or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Strategy Fund vs. Putnam U S
Performance |
| Timeline |
| Growth Strategy |
| Putnam U S |
Growth Strategy and Putnam U Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Strategy and Putnam U
The main advantage of trading using opposite Growth Strategy and Putnam U positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Strategy position performs unexpectedly, Putnam U 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 Putnam U will offset losses from the drop in Putnam U's long position.| Growth Strategy vs. American Funds The | Growth Strategy vs. Income Fund Of | Growth Strategy vs. Income Fund Of | Growth Strategy vs. Income Fund Of |
| Putnam U vs. Shelton Emerging Markets | Putnam U vs. Growth Strategy Fund | Putnam U vs. Ashmore Emerging Markets | Putnam U vs. Rbc Emerging Markets |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |