Correlation Between Columbia Vertible and Putnam Global

Can any of the company-specific risk be diversified away by investing in both Columbia Vertible and Putnam Global 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 Columbia Vertible and Putnam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Columbia Vertible Securities and Putnam Global Financials, you can compare the effects of market volatilities on Columbia Vertible and Putnam Global 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 Columbia Vertible with a short position of Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Vertible and Putnam Global.

Diversification Opportunities for Columbia Vertible and Putnam Global

0.96

Correlation Coefficient

Columbia Vertible  Putnam Global

Almost no diversification

The 3 months correlation between Columbia and Putnam is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Vertible Securities and Putnam Global Financials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Financials and Columbia Vertible 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 Columbia Vertible Securities are associated (or correlated) with Putnam Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Global Financials has no effect on the direction of Columbia Vertible i.e., Columbia Vertible and Putnam Global go up and down completely randomly.

Pair Corralation between Columbia Vertible and Putnam Global

Assuming the 90 days horizon Columbia Vertible Securities is expected to generate 1.35 times more return on investment than Putnam Global. However, Columbia Vertible is 1.35 times more volatile than Putnam Global Financials. It trades about 0.27 of its potential returns per unit of risk. Putnam Global Financials is currently generating about 0.17 per unit of risk. If you would invest  2,206  in Columbia Vertible Securities on May 4, 2025 and sell it today you would earn a total of  197.00  from holding Columbia Vertible Securities or generate 8.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.41%
Values	Daily Returns

Columbia Vertible Securities  vs.  Putnam Global Financials

Columbia Vertible

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Columbia Vertible Securities are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Columbia Vertible may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Putnam Global Financials

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Putnam Global Financials are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong primary indicators, Putnam Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Columbia Vertible and Putnam Global

The main advantage of trading using opposite Columbia Vertible and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Vertible position performs unexpectedly, Putnam Global 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 Putnam Global will offset losses from the drop in Putnam Global's long position.

The idea behind Columbia Vertible Securities and Putnam Global Financials pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.