Correlation Between Putnam Convertible and Short-intermediate
Can any of the company-specific risk be diversified away by investing in both Putnam Convertible and Short-intermediate 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 Short-intermediate 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 Short Intermediate Bond Fund, you can compare the effects of market volatilities on Putnam Convertible and Short-intermediate 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 Short-intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Convertible and Short-intermediate.
Diversification Opportunities for Putnam Convertible and Short-intermediate
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Putnam and Short-intermediate is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Vertible Securities and Short Intermediate Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Intermediate Bond 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 Short-intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Intermediate Bond has no effect on the direction of Putnam Convertible i.e., Putnam Convertible and Short-intermediate go up and down completely randomly.
Pair Corralation between Putnam Convertible and Short-intermediate
Assuming the 90 days horizon Putnam Vertible Securities is expected to generate 4.74 times more return on investment than Short-intermediate. However, Putnam Convertible is 4.74 times more volatile than Short Intermediate Bond Fund. It trades about 0.35 of its potential returns per unit of risk. Short Intermediate Bond Fund is currently generating about 0.15 per unit of risk. If you would invest 2,409 in Putnam Vertible Securities on April 13, 2025 and sell it today you would earn a total of 309.00 from holding Putnam Vertible Securities or generate 12.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Vertible Securities vs. Short Intermediate Bond Fund
Performance |
| Timeline |
| Putnam Vertible Secu |
| Short Intermediate Bond |
Putnam Convertible and Short-intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Convertible and Short-intermediate
The main advantage of trading using opposite Putnam Convertible and Short-intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Convertible position performs unexpectedly, Short-intermediate 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 Short-intermediate will offset losses from the drop in Short-intermediate's long position.| Putnam Convertible vs. Virtus Seix Government | Putnam Convertible vs. Franklin Adjustable Government | Putnam Convertible vs. Intermediate Government Bond | Putnam Convertible vs. Davis Government Bond |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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