Correlation Between Putnman Retirement and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Putnman Retirement and Eaton Vance 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 Putnman Retirement and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnman Retirement Ready and Eaton Vance Short, you can compare the effects of market volatilities on Putnman Retirement and Eaton Vance 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 Putnman Retirement with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnman Retirement and Eaton Vance.
Diversification Opportunities for Putnman Retirement and Eaton Vance
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Putnman and Eaton is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Putnman Retirement Ready and Eaton Vance Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Short and Putnman Retirement 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 Putnman Retirement Ready are associated (or correlated) with Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Short has no effect on the direction of Putnman Retirement i.e., Putnman Retirement and Eaton Vance go up and down completely randomly.
Pair Corralation between Putnman Retirement and Eaton Vance
Assuming the 90 days horizon Putnman Retirement Ready is expected to generate 1.85 times more return on investment than Eaton Vance. However, Putnman Retirement is 1.85 times more volatile than Eaton Vance Short. It trades about 0.18 of its potential returns per unit of risk. Eaton Vance Short is currently generating about 0.28 per unit of risk. If you would invest 2,549 in Putnman Retirement Ready on June 7, 2025 and sell it today you would earn a total of 90.00 from holding Putnman Retirement Ready or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnman Retirement Ready vs. Eaton Vance Short
Performance |
| Timeline |
| Putnman Retirement Ready |
| Eaton Vance Short |
Putnman Retirement and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnman Retirement and Eaton Vance
The main advantage of trading using opposite Putnman Retirement and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnman Retirement position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| Putnman Retirement vs. Great West Government Mortgage | Putnman Retirement vs. Aig Government Money | Putnman Retirement vs. Us Government Securities | Putnman Retirement vs. Us Government Securities |
| Eaton Vance vs. Putnam Global Financials | Eaton Vance vs. Mesirow Financial High | Eaton Vance vs. Goldman Sachs Financial | Eaton Vance vs. Vanguard Financials Index |
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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