Correlation Between Putnam Multi-cap and Manager Directed
Can any of the company-specific risk be diversified away by investing in both Putnam Multi-cap and Manager Directed 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 Multi-cap and Manager Directed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Multi Cap Growth and Manager Directed Portfolios, you can compare the effects of market volatilities on Putnam Multi-cap and Manager Directed 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 Multi-cap with a short position of Manager Directed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Multi-cap and Manager Directed.
Diversification Opportunities for Putnam Multi-cap and Manager Directed
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Putnam and Manager is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Multi Cap Growth and Manager Directed Portfolios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manager Directed Por and Putnam Multi-cap 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 Multi Cap Growth are associated (or correlated) with Manager Directed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manager Directed Por has no effect on the direction of Putnam Multi-cap i.e., Putnam Multi-cap and Manager Directed go up and down completely randomly.
Pair Corralation between Putnam Multi-cap and Manager Directed
Assuming the 90 days horizon Putnam Multi-cap is expected to generate 4.95 times less return on investment than Manager Directed. But when comparing it to its historical volatility, Putnam Multi Cap Growth is 1.62 times less risky than Manager Directed. It trades about 0.09 of its potential returns per unit of risk. Manager Directed Portfolios is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,339 in Manager Directed Portfolios on July 19, 2025 and sell it today you would earn a total of 317.00 from holding Manager Directed Portfolios or generate 23.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Multi Cap Growth vs. Manager Directed Portfolios
Performance |
| Timeline |
| Putnam Multi Cap |
| Manager Directed Por |
Putnam Multi-cap and Manager Directed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Multi-cap and Manager Directed
The main advantage of trading using opposite Putnam Multi-cap and Manager Directed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Multi-cap position performs unexpectedly, Manager Directed 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 Manager Directed will offset losses from the drop in Manager Directed's long position.| Putnam Multi-cap vs. Tiaa Cref Lifecycle Retirement | Putnam Multi-cap vs. Franklin Lifesmart Retirement | Putnam Multi-cap vs. Nuveen Intelligent Risk | Putnam Multi-cap vs. American Funds Retirement |
| Manager Directed vs. Manager Directed Portfolios | Manager Directed vs. Hood River New | Manager Directed vs. Hood River New | Manager Directed vs. Hood River New |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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