Correlation Between Putnam Global and Multimanager Lifestyle
Can any of the company-specific risk be diversified away by investing in both Putnam Global and Multimanager Lifestyle 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 Multimanager Lifestyle 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 Multimanager Lifestyle Balanced, you can compare the effects of market volatilities on Putnam Global and Multimanager Lifestyle 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 Multimanager Lifestyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Global and Multimanager Lifestyle.
Diversification Opportunities for Putnam Global and Multimanager Lifestyle
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Putnam and Multimanager is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Global Health and Multimanager Lifestyle Balance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multimanager Lifestyle 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 Multimanager Lifestyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multimanager Lifestyle has no effect on the direction of Putnam Global i.e., Putnam Global and Multimanager Lifestyle go up and down completely randomly.
Pair Corralation between Putnam Global and Multimanager Lifestyle
Assuming the 90 days horizon Putnam Global Health is expected to generate 1.8 times more return on investment than Multimanager Lifestyle. However, Putnam Global is 1.8 times more volatile than Multimanager Lifestyle Balanced. It trades about 0.26 of its potential returns per unit of risk. Multimanager Lifestyle Balanced is currently generating about 0.11 per unit of risk. If you would invest 6,419 in Putnam Global Health on August 29, 2025 and sell it today you would earn a total of 964.00 from holding Putnam Global Health or generate 15.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Global Health vs. Multimanager Lifestyle Balance
Performance |
| Timeline |
| Putnam Global Health |
| Multimanager Lifestyle |
Putnam Global and Multimanager Lifestyle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Global and Multimanager Lifestyle
The main advantage of trading using opposite Putnam Global and Multimanager Lifestyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Global position performs unexpectedly, Multimanager Lifestyle 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 Multimanager Lifestyle will offset losses from the drop in Multimanager Lifestyle's long position.| Putnam Global vs. Transamerica Intermediate Muni | Putnam Global vs. Ishares Aggregate Bond | Putnam Global vs. Intermediate Term Bond Fund | Putnam Global vs. Morningstar Defensive Bond |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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