Correlation Between Putnam Global and Allianzgi Diversified

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

By analyzing existing cross correlation between Putnam Global Health and Allianzgi Diversified Income, you can compare the effects of market volatilities on Putnam Global and Allianzgi Diversified 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 Allianzgi Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Global and Allianzgi Diversified.

Diversification Opportunities for Putnam Global and Allianzgi Diversified

0.0

Correlation Coefficient

Putnam Global  Allianzgi Diversified

Pay attention - limited upside

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

Pair Corralation between Putnam Global and Allianzgi Diversified

If you would invest  2,276  in Putnam Global Health on December 22, 2024 and sell it today you would earn a total of  0.00  from holding Putnam Global Health or generate 0.0% return on investment over 90 days.

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

Putnam Global Health  vs.  Allianzgi Diversified Income

Putnam Global Health

Risk-Adjusted Performance

Very Weak

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

Allianzgi Diversified

Risk-Adjusted Performance

Very Weak

Over the last 90 days Allianzgi Diversified Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Putnam Global and Allianzgi Diversified

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

The idea behind Putnam Global Health and Allianzgi Diversified Income 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.