Correlation Between Putnam Global and Invesco Multi-asset

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

By analyzing existing cross correlation between Putnam Global Industrials and Invesco Multi Asset Income, you can compare the effects of market volatilities on Putnam Global and Invesco Multi-asset 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 Invesco Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Global and Invesco Multi-asset.

Diversification Opportunities for Putnam Global and Invesco Multi-asset

0.69

Correlation Coefficient

Putnam Global  Invesco Multi-asset

Poor diversification

The 3 months correlation between Putnam and Invesco is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Global Industrials and Invesco Multi Asset Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Multi Asset 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 Industrials are associated (or correlated) with Invesco Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Multi Asset has no effect on the direction of Putnam Global i.e., Putnam Global and Invesco Multi-asset go up and down completely randomly.

Pair Corralation between Putnam Global and Invesco Multi-asset

Assuming the 90 days horizon Putnam Global Industrials is expected to generate 2.62 times more return on investment than Invesco Multi-asset. However, Putnam Global is 2.62 times more volatile than Invesco Multi Asset Income. It trades about 0.27 of its potential returns per unit of risk. Invesco Multi Asset Income is currently generating about 0.1 per unit of risk. If you would invest  3,132  in Putnam Global Industrials on May 6, 2025 and sell it today you would earn a total of  419.00  from holding Putnam Global Industrials or generate 13.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Putnam Global Industrials  vs.  Invesco Multi Asset Income

Putnam Global Industrials

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Putnam Global Industrials are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Putnam Global showed solid returns over the last few months and may actually be approaching a breakup point.

Invesco Multi Asset

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Invesco Multi Asset Income are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Invesco Multi-asset is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Putnam Global and Invesco Multi-asset

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

The idea behind Putnam Global Industrials and Invesco Multi Asset Income 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.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.