Correlation Between Putnam Global and Touchstone Premium
Can any of the company-specific risk be diversified away by investing in both Putnam Global and Touchstone Premium 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 Touchstone Premium 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 Touchstone Premium Yield, you can compare the effects of market volatilities on Putnam Global and Touchstone Premium 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 Touchstone Premium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Global and Touchstone Premium.
Diversification Opportunities for Putnam Global and Touchstone Premium
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Putnam and Touchstone is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Global Financials and Touchstone Premium Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Premium Yield 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 Touchstone Premium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Premium Yield has no effect on the direction of Putnam Global i.e., Putnam Global and Touchstone Premium go up and down completely randomly.
Pair Corralation between Putnam Global and Touchstone Premium
Assuming the 90 days horizon Putnam Global Financials is expected to generate 0.39 times more return on investment than Touchstone Premium. However, Putnam Global Financials is 2.56 times less risky than Touchstone Premium. It trades about 0.16 of its potential returns per unit of risk. Touchstone Premium Yield is currently generating about -0.01 per unit of risk. If you would invest 1,063 in Putnam Global Financials on June 7, 2025 and sell it today you would earn a total of 38.00 from holding Putnam Global Financials or generate 3.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Global Financials vs. Touchstone Premium Yield
Performance |
| Timeline |
| Putnam Global Financials |
| Touchstone Premium Yield |
Putnam Global and Touchstone Premium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Global and Touchstone Premium
The main advantage of trading using opposite Putnam Global and Touchstone Premium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Global position performs unexpectedly, Touchstone Premium 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 Touchstone Premium will offset losses from the drop in Touchstone Premium'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 |
| Touchstone Premium vs. Voya Target Retirement | Touchstone Premium vs. Voya Target Retirement | Touchstone Premium vs. Qs Moderate Growth | Touchstone Premium vs. Massmutual Retiresmart Moderate |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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