Correlation Between Putnam Convertible and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both Putnam Convertible and Lord Abbett 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 Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Convertible Securities and Lord Abbett Convertible, you can compare the effects of market volatilities on Putnam Convertible and Lord Abbett 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 Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Convertible and Lord Abbett.
Diversification Opportunities for Putnam Convertible and Lord Abbett
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Putnam and Lord is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Convertible Securities and Lord Abbett Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Convertible 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 Convertible Securities are associated (or correlated) with Lord Abbett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lord Abbett Convertible has no effect on the direction of Putnam Convertible i.e., Putnam Convertible and Lord Abbett go up and down completely randomly.
Pair Corralation between Putnam Convertible and Lord Abbett
Assuming the 90 days horizon Putnam Convertible Securities is expected to under-perform the Lord Abbett. But the mutual fund apears to be less risky and, when comparing its historical volatility, Putnam Convertible Securities is 1.06 times less risky than Lord Abbett. The mutual fund trades about -0.06 of its potential returns per unit of risk. The Lord Abbett Convertible is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,713 in Lord Abbett Convertible on October 6, 2025 and sell it today you would earn a total of 30.00 from holding Lord Abbett Convertible or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Convertible Securities vs. Lord Abbett Convertible
Performance |
| Timeline |
| Putnam Convertible |
| Lord Abbett Convertible |
Putnam Convertible and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Convertible and Lord Abbett
The main advantage of trading using opposite Putnam Convertible and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Convertible position performs unexpectedly, Lord Abbett 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 Lord Abbett will offset losses from the drop in Lord Abbett's long position.| Putnam Convertible vs. Clearbridge Energy Mlp | Putnam Convertible vs. Gmo Resources | Putnam Convertible vs. Icon Natural Resources | Putnam Convertible vs. Ivy Natural Resources |
| Lord Abbett vs. United Kingdom Small | Lord Abbett vs. Glg Intl Small | Lord Abbett vs. Nt International Small Mid | Lord Abbett vs. Qs Small Capitalization |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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