Correlation Between Siit High and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Siit High and Putnam 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 Siit High and Putnam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit High Yield and Putnam Global Health, you can compare the effects of market volatilities on Siit High and Putnam 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 Siit High with a short position of Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Putnam Global.
Diversification Opportunities for Siit High and Putnam Global
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Siit and Putnam is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Putnam Global Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Health and Siit High 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 Siit High Yield are associated (or correlated) with Putnam Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Global Health has no effect on the direction of Siit High i.e., Siit High and Putnam Global go up and down completely randomly.
Pair Corralation between Siit High and Putnam Global
Assuming the 90 days horizon Siit High Yield is expected to generate 0.25 times more return on investment than Putnam Global. However, Siit High Yield is 3.93 times less risky than Putnam Global. It trades about 0.12 of its potential returns per unit of risk. Putnam Global Health is currently generating about -0.07 per unit of risk. If you would invest 707.00 in Siit High Yield on December 1, 2024 and sell it today you would earn a total of 11.00 from holding Siit High Yield or generate 1.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Siit High Yield vs. Putnam Global Health
Performance |
Timeline |
Siit High Yield |
Putnam Global Health |
Siit High and Putnam Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Siit High and Putnam Global
The main advantage of trading using opposite Siit High and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Putnam 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 Putnam Global will offset losses from the drop in Putnam Global's long position.Siit High vs. Texton Property | Siit High vs. Prudential Real Estate | Siit High vs. Vanguard Reit Index | Siit High vs. Vy Clarion Real |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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