Correlation Between Dunham Dynamic and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Dunham Dynamic 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 Dunham Dynamic and Putnam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Dynamic Macro and Putnam Global Technology, you can compare the effects of market volatilities on Dunham Dynamic 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 Dunham Dynamic with a short position of Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Dynamic and Putnam Global.
Diversification Opportunities for Dunham Dynamic and Putnam Global
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dunham and Putnam is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Dynamic Macro and Putnam Global Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Technology and Dunham Dynamic 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 Dunham Dynamic Macro 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 Technology has no effect on the direction of Dunham Dynamic i.e., Dunham Dynamic and Putnam Global go up and down completely randomly.
Pair Corralation between Dunham Dynamic and Putnam Global
Assuming the 90 days horizon Dunham Dynamic is expected to generate 9.26 times less return on investment than Putnam Global. But when comparing it to its historical volatility, Dunham Dynamic Macro is 6.15 times less risky than Putnam Global. It trades about 0.18 of its potential returns per unit of risk. Putnam Global Technology is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 6,695 in Putnam Global Technology on May 6, 2025 and sell it today you would earn a total of 1,371 from holding Putnam Global Technology or generate 20.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Dunham Dynamic Macro vs. Putnam Global Technology
Performance |
Timeline |
Dunham Dynamic Macro |
Putnam Global Technology |
Dunham Dynamic and Putnam Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dunham Dynamic and Putnam Global
The main advantage of trading using opposite Dunham Dynamic and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Dynamic 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.Dunham Dynamic vs. Goldman Sachs Clean | Dunham Dynamic vs. Sprott Gold Equity | Dunham Dynamic vs. Vy Goldman Sachs | Dunham Dynamic vs. Invesco Gold Special |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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