Correlation Between Putnam Convertible and Sa Global
Can any of the company-specific risk be diversified away by investing in both Putnam Convertible and Sa 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 Putnam Convertible and Sa Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Convertible Incm Gwth and Sa Global Fixed, you can compare the effects of market volatilities on Putnam Convertible and Sa 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 Putnam Convertible with a short position of Sa Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Convertible and Sa Global.
Diversification Opportunities for Putnam Convertible and Sa Global
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Putnam and SAXIX is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Convertible Incm Gwth and Sa Global Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sa Global Fixed and Putnam Convertible 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 Convertible Incm Gwth are associated (or correlated) with Sa Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sa Global Fixed has no effect on the direction of Putnam Convertible i.e., Putnam Convertible and Sa Global go up and down completely randomly.
Pair Corralation between Putnam Convertible and Sa Global
Assuming the 90 days horizon Putnam Convertible Incm Gwth is expected to generate 5.11 times more return on investment than Sa Global. However, Putnam Convertible is 5.11 times more volatile than Sa Global Fixed. It trades about 0.07 of its potential returns per unit of risk. Sa Global Fixed is currently generating about 0.19 per unit of risk. If you would invest 2,259 in Putnam Convertible Incm Gwth on December 4, 2024 and sell it today you would earn a total of 218.00 from holding Putnam Convertible Incm Gwth or generate 9.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Putnam Convertible Incm Gwth vs. Sa Global Fixed
Performance |
Timeline |
Putnam Convertible Incm |
Sa Global Fixed |
Putnam Convertible and Sa Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Putnam Convertible and Sa Global
The main advantage of trading using opposite Putnam Convertible and Sa Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Convertible position performs unexpectedly, Sa 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 Sa Global will offset losses from the drop in Sa Global's long position.Putnam Convertible vs. Rbc Impact Bond | Putnam Convertible vs. Ab Bond Inflation | Putnam Convertible vs. Morningstar Defensive Bond | Putnam Convertible vs. Doubleline Total Return |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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