Correlation Between Putnam Global and Blackstone Secured

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

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

Diversification Opportunities for Putnam Global and Blackstone Secured

-0.35

Correlation Coefficient

Putnam Global  Blackstone Secured

Very good diversification

The 3 months correlation between Putnam and Blackstone is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Global Financials and Blackstone Secured Lending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Secured and Putnam Global 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 Global Financials are associated (or correlated) with Blackstone Secured. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Secured has no effect on the direction of Putnam Global i.e., Putnam Global and Blackstone Secured go up and down completely randomly.

Pair Corralation between Putnam Global and Blackstone Secured

Assuming the 90 days horizon Putnam Global is expected to generate 3.86 times less return on investment than Blackstone Secured. But when comparing it to its historical volatility, Putnam Global Financials is 2.07 times less risky than Blackstone Secured. It trades about 0.06 of its potential returns per unit of risk. Blackstone Secured Lending is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  1,901  in Blackstone Secured Lending on October 9, 2024 and sell it today you would earn a total of  1,264  from holding Blackstone Secured Lending or generate 66.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	38.79%
Values	Daily Returns

Putnam Global Financials  vs.  Blackstone Secured Lending

Putnam Global Financials

Risk-Adjusted Performance

0 of 100

Very Weak

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

Blackstone Secured

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Secured Lending are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. Despite quite unsteady basic indicators, Blackstone Secured may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Putnam Global and Blackstone Secured

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

The idea behind Putnam Global Financials and Blackstone Secured Lending 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.