Correlation Between Putnam Retirement and Vy(r) Baron

Can any of the company-specific risk be diversified away by investing in both Putnam Retirement and Vy(r) Baron 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 Vy(r) Baron 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 Vy Baron Growth, you can compare the effects of market volatilities on Putnam Retirement and Vy(r) Baron 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 Vy(r) Baron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Retirement and Vy(r) Baron.

Diversification Opportunities for Putnam Retirement and Vy(r) Baron

0.57

Correlation Coefficient

Putnam Retirement  Vy(r) Baron

Very weak diversification

The 3 months correlation between Putnam and Vy(r) is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Retirement Advantage and Vy Baron Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Baron Growth 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 Vy(r) Baron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Baron Growth has no effect on the direction of Putnam Retirement i.e., Putnam Retirement and Vy(r) Baron go up and down completely randomly.

Pair Corralation between Putnam Retirement and Vy(r) Baron

If you would invest (100.00) in Vy Baron Growth on October 10, 2024 and sell it today you would earn a total of  100.00  from holding Vy Baron Growth or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	0.0%
Values	Daily Returns

Putnam Retirement Advantage  vs.  Vy Baron Growth

Putnam Retirement

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Putnam Retirement Advantage has generated negative risk-adjusted returns adding no value to fund investors. 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.

Vy Baron Growth

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vy Baron Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Vy(r) Baron is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Putnam Retirement and Vy(r) Baron

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

The idea behind Putnam Retirement Advantage and Vy Baron Growth 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.