Correlation Between Sparta Capital and Putnam Growth
Can any of the company-specific risk be diversified away by investing in both Sparta Capital and Putnam Growth 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 Sparta Capital and Putnam Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sparta Capital and Putnam Growth Opportunities, you can compare the effects of market volatilities on Sparta Capital and Putnam Growth 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 Sparta Capital with a short position of Putnam Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparta Capital and Putnam Growth.
Diversification Opportunities for Sparta Capital and Putnam Growth
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sparta and Putnam is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Sparta Capital and Putnam Growth Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Growth Opport and Sparta Capital 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 Sparta Capital are associated (or correlated) with Putnam Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Growth Opport has no effect on the direction of Sparta Capital i.e., Sparta Capital and Putnam Growth go up and down completely randomly.
Pair Corralation between Sparta Capital and Putnam Growth
If you would invest 1.03 in Sparta Capital on November 27, 2024 and sell it today you would earn a total of 0.00 from holding Sparta Capital or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sparta Capital vs. Putnam Growth Opportunities
Performance |
| Timeline |
| Sparta Capital |
| Putnam Growth Opport |
Sparta Capital and Putnam Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparta Capital and Putnam Growth
The main advantage of trading using opposite Sparta Capital and Putnam Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparta Capital position performs unexpectedly, Putnam Growth 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 Growth will offset losses from the drop in Putnam Growth's long position.| Sparta Capital vs. Zurn Elkay Water | Sparta Capital vs. Federal Signal | Sparta Capital vs. Energy Recovery | Sparta Capital vs. CECO Environmental Corp |
| Putnam Growth vs. Putnam Equity Income | Putnam Growth vs. Putnam Multi Cap Growth | Putnam Growth vs. Putnam Global Health | Putnam Growth vs. Putnam International Equity |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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