Correlation Between Putnam Money and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Putnam Money and Goldman Sachs 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 Money and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Money Market and Goldman Sachs International, you can compare the effects of market volatilities on Putnam Money and Goldman Sachs 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 Money with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Money and Goldman Sachs.
Diversification Opportunities for Putnam Money and Goldman Sachs
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Putnam and Goldman is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Money Market and Goldman Sachs International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Intern and Putnam Money 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 Money Market are associated (or correlated) with Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Intern has no effect on the direction of Putnam Money i.e., Putnam Money and Goldman Sachs go up and down completely randomly.
Pair Corralation between Putnam Money and Goldman Sachs
If you would invest 1,640 in Goldman Sachs International on April 24, 2025 and sell it today you would earn a total of 41.00 from holding Goldman Sachs International or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Money Market vs. Goldman Sachs International
Performance |
| Timeline |
| Putnam Money Market |
| Goldman Sachs Intern |
Putnam Money and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Money and Goldman Sachs
The main advantage of trading using opposite Putnam Money and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Money position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Putnam Money vs. Artisan Global Opportunities | Putnam Money vs. Ms Global Fixed | Putnam Money vs. Gamco Global Opportunity | Putnam Money vs. Calvert Global Energy |
| Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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