Correlation Between Putnam Global and Hartford Growth
Can any of the company-specific risk be diversified away by investing in both Putnam Global and Hartford Growth 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 Global and Hartford Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Global Financials and The Hartford Growth, you can compare the effects of market volatilities on Putnam Global and Hartford Growth 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 Global with a short position of Hartford Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Global and Hartford Growth.
Diversification Opportunities for Putnam Global and Hartford Growth
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Putnam and Hartford is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Global Financials and The Hartford Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Growth and Putnam Global 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 Global Financials are associated (or correlated) with Hartford Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Growth has no effect on the direction of Putnam Global i.e., Putnam Global and Hartford Growth go up and down completely randomly.
Pair Corralation between Putnam Global and Hartford Growth
Assuming the 90 days horizon Putnam Global is expected to generate 3.77 times less return on investment than Hartford Growth. But when comparing it to its historical volatility, Putnam Global Financials is 2.33 times less risky than Hartford Growth. It trades about 0.18 of its potential returns per unit of risk. The Hartford Growth is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 6,123 in The Hartford Growth on May 2, 2025 and sell it today you would earn a total of 1,074 from holding The Hartford Growth or generate 17.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Global Financials vs. The Hartford Growth
Performance |
| Timeline |
| Putnam Global Financials |
| Hartford Growth |
Putnam Global and Hartford Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Global and Hartford Growth
The main advantage of trading using opposite Putnam Global and Hartford Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Global position performs unexpectedly, Hartford Growth 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 Hartford Growth will offset losses from the drop in Hartford Growth's long position.| Putnam Global vs. Putnam Equity Income | Putnam Global vs. Putnam Tax Exempt | Putnam Global vs. Putnam Floating Rate | Putnam Global vs. Putnam High Yield |
| Hartford Growth vs. Invesco Diversified Dividend | Hartford Growth vs. Aqr Diversified Arbitrage | Hartford Growth vs. Thrivent Diversified Income | Hartford Growth vs. Adams Diversified Equity |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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