Correlation Between Gamco Natural and Putnam Floating
Can any of the company-specific risk be diversified away by investing in both Gamco Natural and Putnam Floating 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 Gamco Natural and Putnam Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamco Natural Resources and Putnam Floating Rate, you can compare the effects of market volatilities on Gamco Natural and Putnam Floating 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 Gamco Natural with a short position of Putnam Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Natural and Putnam Floating.
Diversification Opportunities for Gamco Natural and Putnam Floating
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gamco and Putnam is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Natural Resources and Putnam Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Floating Rate and Gamco Natural 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 Gamco Natural Resources are associated (or correlated) with Putnam Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Floating Rate has no effect on the direction of Gamco Natural i.e., Gamco Natural and Putnam Floating go up and down completely randomly.
Pair Corralation between Gamco Natural and Putnam Floating
Assuming the 90 days horizon Gamco Natural Resources is expected to under-perform the Putnam Floating. In addition to that, Gamco Natural is 15.96 times more volatile than Putnam Floating Rate. It trades about -0.11 of its total potential returns per unit of risk. Putnam Floating Rate is currently generating about 0.46 per unit of volatility. If you would invest 797.00 in Putnam Floating Rate on September 1, 2024 and sell it today you would earn a total of 4.00 from holding Putnam Floating Rate or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Gamco Natural Resources vs. Putnam Floating Rate
Performance |
| Timeline |
| Gamco Natural Resources |
| Putnam Floating Rate |
Gamco Natural and Putnam Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco Natural and Putnam Floating
The main advantage of trading using opposite Gamco Natural and Putnam Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Natural position performs unexpectedly, Putnam Floating 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 Floating will offset losses from the drop in Putnam Floating's long position.| Gamco Natural vs. Vanguard Total Stock | Gamco Natural vs. Vanguard 500 Index | Gamco Natural vs. Vanguard Total Stock | Gamco Natural vs. Vanguard Total Stock |
| Putnam Floating vs. Eagle Mlp Strategy | Putnam Floating vs. Doubleline Emerging Markets | Putnam Floating vs. Origin Emerging Markets | Putnam Floating vs. Transamerica 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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