Correlation Between George Putnam and Pimco Global

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

By analyzing existing cross correlation between George Putnam Fund and Pimco Global Stocksplus, you can compare the effects of market volatilities on George Putnam and Pimco Global 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 George Putnam with a short position of Pimco Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of George Putnam and Pimco Global.

Diversification Opportunities for George Putnam and Pimco Global

0.0

Correlation Coefficient

George Putnam  Pimco Global

Pay attention - limited upside

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

Pair Corralation between George Putnam and Pimco Global

If you would invest  785.00  in Pimco Global Stocksplus on November 19, 2024 and sell it today you would earn a total of  13.00  from holding Pimco Global Stocksplus or generate 1.66% return on investment over 90 days.

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

George Putnam Fund  vs.  Pimco Global Stocksplus

George Putnam

Risk-Adjusted Performance

Very Weak

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

Pimco Global Stocksplus

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Pimco Global Stocksplus are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. Even with relatively invariable technical and fundamental indicators, Pimco Global is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with George Putnam and Pimco Global

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

The idea behind George Putnam Fund and Pimco Global Stocksplus 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.