Correlation Between Saat Market and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Saat Market 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 Saat Market and Putnam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Market Growth and Putnam Global Financials, you can compare the effects of market volatilities on Saat Market 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 Saat Market with a short position of Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Market and Putnam Global.
Diversification Opportunities for Saat Market and Putnam Global
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Saat and Putnam is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Saat Market Growth and Putnam Global Financials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Financials and Saat Market 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 Saat Market Growth 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 Financials has no effect on the direction of Saat Market i.e., Saat Market and Putnam Global go up and down completely randomly.
Pair Corralation between Saat Market and Putnam Global
Assuming the 90 days horizon Saat Market Growth is expected to under-perform the Putnam Global. In addition to that, Saat Market is 1.47 times more volatile than Putnam Global Financials. It trades about -0.3 of its total potential returns per unit of risk. Putnam Global Financials is currently generating about -0.3 per unit of volatility. If you would invest 1,079 in Putnam Global Financials on October 11, 2024 and sell it today you would lose (42.00) from holding Putnam Global Financials or give up 3.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Market Growth vs. Putnam Global Financials
Performance |
| Timeline |
| Saat Market Growth |
| Putnam Global Financials |
Saat Market and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Market and Putnam Global
The main advantage of trading using opposite Saat Market and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Market 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.| Saat Market vs. Simt Multi Asset Accumulation | Saat Market vs. Simt Real Return | Saat Market vs. Simt Small Cap | Saat Market vs. Siit Screened World |
| Putnam Global vs. T Rowe Price | Putnam Global vs. Saat Market Growth | Putnam Global vs. Franklin Emerging Market | Putnam Global vs. Locorr Market Trend |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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