Correlation Between Guggenheim Managed and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Guggenheim Managed and Putnam Global 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 Guggenheim Managed and Putnam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guggenheim Managed Futures and Putnam Global Incm, you can compare the effects of market volatilities on Guggenheim Managed and Putnam Global 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 Guggenheim Managed with a short position of Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Managed and Putnam Global.
Diversification Opportunities for Guggenheim Managed and Putnam Global
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guggenheim and Putnam is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Managed Futures and Putnam Global Incm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Incm and Guggenheim Managed 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 Guggenheim Managed Futures are associated (or correlated) with Putnam Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Global Incm has no effect on the direction of Guggenheim Managed i.e., Guggenheim Managed and Putnam Global go up and down completely randomly.
Pair Corralation between Guggenheim Managed and Putnam Global
Assuming the 90 days horizon Guggenheim Managed Futures is expected to generate 2.66 times more return on investment than Putnam Global. However, Guggenheim Managed is 2.66 times more volatile than Putnam Global Incm. It trades about 0.0 of its potential returns per unit of risk. Putnam Global Incm is currently generating about -0.09 per unit of risk. If you would invest 2,127 in Guggenheim Managed Futures on September 12, 2024 and sell it today you would earn a total of 1.00 from holding Guggenheim Managed Futures or generate 0.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Managed Futures vs. Putnam Global Incm
Performance |
| Timeline |
| Guggenheim Managed |
| Putnam Global Incm |
Guggenheim Managed and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Managed and Putnam Global
The main advantage of trading using opposite Guggenheim Managed and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Managed position performs unexpectedly, Putnam Global 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 Global will offset losses from the drop in Putnam Global's long position.| Guggenheim Managed vs. Morningstar Aggressive Growth | Guggenheim Managed vs. Alliancebernstein Global High | Guggenheim Managed vs. Artisan High Income | Guggenheim Managed vs. Us High Relative |
| Putnam Global vs. Short Duration Inflation | Putnam Global vs. Ab Bond Inflation | Putnam Global vs. Goldman Sachs Inflation | Putnam Global vs. Guggenheim Managed Futures |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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