Correlation Between Putnam Global and Simt Multi-asset

Can any of the company-specific risk be diversified away by investing in both Putnam Global and Simt 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 Simt 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 Health and Simt Multi Asset Capital, you can compare the effects of market volatilities on Putnam Global and Simt 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 Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Global and Simt Multi-asset.

Diversification Opportunities for Putnam Global and Simt Multi-asset

0.74

Correlation Coefficient

Putnam Global  Simt Multi-asset

Poor diversification

The 3 months correlation between Putnam and Simt is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Global Health and Simt Multi Asset Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt 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 Health are associated (or correlated) with Simt 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 Simt Multi Asset has no effect on the direction of Putnam Global i.e., Putnam Global and Simt Multi-asset go up and down completely randomly.

Pair Corralation between Putnam Global and Simt Multi-asset

Assuming the 90 days horizon Putnam Global Health is expected to generate 6.83 times more return on investment than Simt Multi-asset. However, Putnam Global is 6.83 times more volatile than Simt Multi Asset Capital. It trades about 0.05 of its potential returns per unit of risk. Simt Multi Asset Capital is currently generating about 0.24 per unit of risk. If you would invest  6,192  in Putnam Global Health on June 30, 2025 and sell it today you would earn a total of  147.00  from holding Putnam Global Health or generate 2.37% return on investment over 90 days.

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

Putnam Global Health  vs.  Simt Multi Asset Capital

Putnam Global Health

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Putnam Global Health are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Putnam Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Simt Multi Asset

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Simt Multi Asset Capital are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Simt 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 Simt Multi-asset

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

The idea behind Putnam Global Health and Simt Multi Asset Capital 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.