Correlation Between Putnam Retirement and Conquer Risk

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

By analyzing existing cross correlation between Putnam Retirement Advantage and Conquer Risk Tactical, you can compare the effects of market volatilities on Putnam Retirement and Conquer Risk 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 Putnam Retirement with a short position of Conquer Risk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Retirement and Conquer Risk.

Diversification Opportunities for Putnam Retirement and Conquer Risk

0.39

Correlation Coefficient

Putnam Retirement  Conquer Risk

Weak diversification

The 3 months correlation between Putnam and Conquer is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Retirement Advantage and Conquer Risk Tactical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conquer Risk Tactical and Putnam Retirement 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 Putnam Retirement Advantage are associated (or correlated) with Conquer Risk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conquer Risk Tactical has no effect on the direction of Putnam Retirement i.e., Putnam Retirement and Conquer Risk go up and down completely randomly.

Pair Corralation between Putnam Retirement and Conquer Risk

Assuming the 90 days horizon Putnam Retirement Advantage is expected to generate 1.14 times more return on investment than Conquer Risk. However, Putnam Retirement is 1.14 times more volatile than Conquer Risk Tactical. It trades about 0.08 of its potential returns per unit of risk. Conquer Risk Tactical is currently generating about 0.03 per unit of risk. If you would invest  892.00  in Putnam Retirement Advantage on October 27, 2024 and sell it today you would earn a total of  333.00  from holding Putnam Retirement Advantage or generate 37.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

Putnam Retirement Advantage  vs.  Conquer Risk Tactical

Putnam Retirement

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Putnam Retirement Advantage are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward-looking indicators, Putnam Retirement is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Conquer Risk Tactical

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Conquer Risk Tactical are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental drivers, Conquer Risk may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Putnam Retirement and Conquer Risk

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

The idea behind Putnam Retirement Advantage and Conquer Risk Tactical 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.