Correlation Between Blackrock Health and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Blackrock Health 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 Blackrock Health and Putnam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Health Sciences and Putnam Global Health, you can compare the effects of market volatilities on Blackrock Health 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 Blackrock Health with a short position of Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Health and Putnam Global.
Diversification Opportunities for Blackrock Health and Putnam Global
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Blackrock and Putnam is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Health Sciences 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 Blackrock Health 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 Blackrock Health Sciences 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 Blackrock Health i.e., Blackrock Health and Putnam Global go up and down completely randomly.
Pair Corralation between Blackrock Health and Putnam Global
Assuming the 90 days horizon Blackrock Health Sciences is expected to generate 0.91 times more return on investment than Putnam Global. However, Blackrock Health Sciences is 1.1 times less risky than Putnam Global. It trades about 0.11 of its potential returns per unit of risk. Putnam Global Health is currently generating about 0.09 per unit of risk. If you would invest 5,491 in Blackrock Health Sciences on June 8, 2025 and sell it today you would earn a total of 286.00 from holding Blackrock Health Sciences or generate 5.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Health Sciences vs. Putnam Global Health
Performance |
| Timeline |
| Blackrock Health Sciences |
| Putnam Global Health |
Blackrock Health and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Health and Putnam Global
The main advantage of trading using opposite Blackrock Health and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Health 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.| Blackrock Health vs. Vy T Rowe | Blackrock Health vs. Eaton Vance Atlanta | Blackrock Health vs. Columbia Seligman Global | Blackrock Health vs. Blackrock Health Sciences |
| Putnam Global vs. Mesirow Financial Small | Putnam Global vs. Davis Financial Fund | Putnam Global vs. Goldman Sachs Financial | Putnam Global vs. Transamerica Financial Life |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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