Correlation Between Putnam Global and Nationwide Amundi

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

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

Diversification Opportunities for Putnam Global and Nationwide Amundi

0.59

Correlation Coefficient

Putnam Global  Nationwide Amundi

Very weak diversification

The 3 months correlation between Putnam and Nationwide is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Global Technology and Nationwide Amundi Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Amundi 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 Technology are associated (or correlated) with Nationwide Amundi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Amundi has no effect on the direction of Putnam Global i.e., Putnam Global and Nationwide Amundi go up and down completely randomly.

Pair Corralation between Putnam Global and Nationwide Amundi

Assuming the 90 days horizon Putnam Global Technology is expected to under-perform the Nationwide Amundi. In addition to that, Putnam Global is 6.25 times more volatile than Nationwide Amundi Strategic. It trades about -0.08 of its total potential returns per unit of risk. Nationwide Amundi Strategic is currently generating about 0.02 per unit of volatility. If you would invest  998.00  in Nationwide Amundi Strategic on October 9, 2024 and sell it today you would earn a total of  2.00  from holding Nationwide Amundi Strategic or generate 0.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Putnam Global Technology  vs.  Nationwide Amundi Strategic

Putnam Global Technology

Risk-Adjusted Performance

0 of 100

Very Weak

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

Nationwide Amundi

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nationwide Amundi Strategic are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical indicators, Nationwide Amundi is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Putnam Global and Nationwide Amundi

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

The idea behind Putnam Global Technology and Nationwide Amundi Strategic 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..