Correlation Between Putnam Convertible and Lazard Funds
Can any of the company-specific risk be diversified away by investing in both Putnam Convertible and Lazard Funds 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 Lazard Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Vertible Securities and The Lazard Funds, you can compare the effects of market volatilities on Putnam Convertible and Lazard Funds 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 Lazard Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Convertible and Lazard Funds.
Diversification Opportunities for Putnam Convertible and Lazard Funds
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Putnam and Lazard is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Vertible Securities and The Lazard Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Funds 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 Vertible Securities are associated (or correlated) with Lazard Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Funds has no effect on the direction of Putnam Convertible i.e., Putnam Convertible and Lazard Funds go up and down completely randomly.
Pair Corralation between Putnam Convertible and Lazard Funds
Assuming the 90 days horizon Putnam Convertible is expected to generate 1.15 times less return on investment than Lazard Funds. In addition to that, Putnam Convertible is 1.08 times more volatile than The Lazard Funds. It trades about 0.3 of its total potential returns per unit of risk. The Lazard Funds is currently generating about 0.38 per unit of volatility. If you would invest 1,060 in The Lazard Funds on April 24, 2025 and sell it today you would earn a total of 124.00 from holding The Lazard Funds or generate 11.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Vertible Securities vs. The Lazard Funds
Performance |
| Timeline |
| Putnam Vertible Secu |
| Lazard Funds |
Putnam Convertible and Lazard Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Convertible and Lazard Funds
The main advantage of trading using opposite Putnam Convertible and Lazard Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Convertible position performs unexpectedly, Lazard Funds 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 Lazard Funds will offset losses from the drop in Lazard Funds' long position.| Putnam Convertible vs. Vanguard Global Equity | Putnam Convertible vs. Semiconductor Ultrasector Profund | Putnam Convertible vs. Volumetric Fund Volumetric | Putnam Convertible vs. Auer Growth Fund |
| Lazard Funds vs. Transamerica International Small | Lazard Funds vs. Western Asset Diversified | Lazard Funds vs. Siit Small Cap | Lazard Funds vs. Scout Small Cap |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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