Correlation Between Guidepath Conservative and Putnam International

Can any of the company-specific risk be diversified away by investing in both Guidepath Conservative and Putnam International 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 Guidepath Conservative and Putnam International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Guidepath Conservative Income and Putnam International Value, you can compare the effects of market volatilities on Guidepath Conservative and Putnam International 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 Guidepath Conservative with a short position of Putnam International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidepath Conservative and Putnam International.

Diversification Opportunities for Guidepath Conservative and Putnam International

0.0

Correlation Coefficient

Guidepath Conservative  Putnam International

Pay attention - limited upside

The 3 months correlation between Guidepath and Putnam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Guidepath Conservative Income and Putnam International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam International and Guidepath Conservative 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 Guidepath Conservative Income are associated (or correlated) with Putnam International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam International has no effect on the direction of Guidepath Conservative i.e., Guidepath Conservative and Putnam International go up and down completely randomly.

Pair Corralation between Guidepath Conservative and Putnam International

If you would invest  959.00  in Guidepath Conservative Income on December 22, 2024 and sell it today you would earn a total of  6.00  from holding Guidepath Conservative Income or generate 0.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Guidepath Conservative Income  vs.  Putnam International Value

Guidepath Conservative

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Guidepath Conservative Income are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Guidepath Conservative is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Putnam International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Putnam International Value has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental drivers, Putnam International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Guidepath Conservative and Putnam International

The main advantage of trading using opposite Guidepath Conservative and Putnam International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidepath Conservative position performs unexpectedly, Putnam International 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 International will offset losses from the drop in Putnam International's long position.

The idea behind Guidepath Conservative Income and Putnam International Value pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.