Correlation Between Putnam Retirement and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Putnam Retirement and Loomis Sayles 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 Loomis Sayles 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 Loomis Sayles Smallmid, you can compare the effects of market volatilities on Putnam Retirement and Loomis Sayles 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 Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Retirement and Loomis Sayles.
Diversification Opportunities for Putnam Retirement and Loomis Sayles
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Putnam and Loomis is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Retirement Advantage and Loomis Sayles Smallmid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Smallmid 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 Loomis Sayles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loomis Sayles Smallmid has no effect on the direction of Putnam Retirement i.e., Putnam Retirement and Loomis Sayles go up and down completely randomly.
Pair Corralation between Putnam Retirement and Loomis Sayles
Assuming the 90 days horizon Putnam Retirement Advantage is expected to under-perform the Loomis Sayles. In addition to that, Putnam Retirement is 1.34 times more volatile than Loomis Sayles Smallmid. It trades about -0.26 of its total potential returns per unit of risk. Loomis Sayles Smallmid is currently generating about -0.15 per unit of volatility. If you would invest 1,434 in Loomis Sayles Smallmid on October 9, 2024 and sell it today you would lose (45.00) from holding Loomis Sayles Smallmid or give up 3.14% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Putnam Retirement Advantage vs. Loomis Sayles Smallmid
Performance |
Timeline |
Putnam Retirement |
Loomis Sayles Smallmid |
Putnam Retirement and Loomis Sayles Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Putnam Retirement and Loomis Sayles
The main advantage of trading using opposite Putnam Retirement and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Retirement position performs unexpectedly, Loomis Sayles 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 Loomis Sayles will offset losses from the drop in Loomis Sayles' long position.Putnam Retirement vs. Putnam Equity Income | Putnam Retirement vs. Putnam Tax Exempt | Putnam Retirement vs. Putnam Floating Rate | Putnam Retirement vs. Putnam High Yield |
Loomis Sayles vs. Tax Managed Large Cap | Loomis Sayles vs. Vest Large Cap | Loomis Sayles vs. Fisher Large Cap | Loomis Sayles vs. M Large Cap |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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