Correlation Between Putnam Global and Dfa International
Can any of the company-specific risk be diversified away by investing in both Putnam Global and Dfa International 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 Dfa International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Global Health and Dfa International Value, you can compare the effects of market volatilities on Putnam Global and Dfa International 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 Dfa International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Global and Dfa International.
Diversification Opportunities for Putnam Global and Dfa International
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Putnam and Dfa is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Global Health and Dfa International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dfa International Value 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 Health are associated (or correlated) with Dfa International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dfa International Value has no effect on the direction of Putnam Global i.e., Putnam Global and Dfa International go up and down completely randomly.
Pair Corralation between Putnam Global and Dfa International
Assuming the 90 days horizon Putnam Global Health is expected to generate 1.23 times more return on investment than Dfa International. However, Putnam Global is 1.23 times more volatile than Dfa International Value. It trades about 0.17 of its potential returns per unit of risk. Dfa International Value is currently generating about 0.15 per unit of risk. If you would invest 6,464 in Putnam Global Health on September 12, 2025 and sell it today you would earn a total of 657.00 from holding Putnam Global Health or generate 10.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Global Health vs. Dfa International Value
Performance |
| Timeline |
| Putnam Global Health |
| Dfa International Value |
Putnam Global and Dfa International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Global and Dfa International
The main advantage of trading using opposite Putnam Global and Dfa International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Global position performs unexpectedly, Dfa International 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 Dfa International will offset losses from the drop in Dfa International's long position.| Putnam Global vs. Putnam High Yield | Putnam Global vs. Putnam Floating Rate | Putnam Global vs. George Putnam Fund | Putnam Global vs. Putnam Global Financials |
| Dfa International vs. Emerging Markets Value | Dfa International vs. Mfs Research International | Dfa International vs. Dfa Investment Grade | Dfa International vs. Dfa International Small |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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