Correlation Between Western Asset and Putnam Panagora
Can any of the company-specific risk be diversified away by investing in both Western Asset and Putnam Panagora 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 Western Asset and Putnam Panagora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Diversified and Putnam Panagora Risk, you can compare the effects of market volatilities on Western Asset and Putnam Panagora 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 Western Asset with a short position of Putnam Panagora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Putnam Panagora.
Diversification Opportunities for Western Asset and Putnam Panagora
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Western and Putnam is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Diversified and Putnam Panagora Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Panagora Risk and Western Asset 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 Western Asset Diversified are associated (or correlated) with Putnam Panagora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Panagora Risk has no effect on the direction of Western Asset i.e., Western Asset and Putnam Panagora go up and down completely randomly.
Pair Corralation between Western Asset and Putnam Panagora
If you would invest 1,505 in Western Asset Diversified on August 28, 2024 and sell it today you would earn a total of 32.00 from holding Western Asset Diversified or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.28% |
| Values | Daily Returns |
Western Asset Diversified vs. Putnam Panagora Risk
Performance |
| Timeline |
| Western Asset Diversified |
| Putnam Panagora Risk |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Western Asset and Putnam Panagora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Putnam Panagora
The main advantage of trading using opposite Western Asset and Putnam Panagora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Putnam Panagora 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 Panagora will offset losses from the drop in Putnam Panagora's long position.| Western Asset vs. Vanguard Total Stock | Western Asset vs. Vanguard 500 Index | Western Asset vs. Vanguard Total Stock | Western Asset vs. Vanguard Total Stock |
| Putnam Panagora vs. Barings Active Short | Putnam Panagora vs. Siit Ultra Short | Putnam Panagora vs. Vanguard Institutional Short Term | Putnam Panagora vs. Old Westbury Short Term |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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