Correlation Between Putnam Global and Siit Screened

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

By analyzing existing cross correlation between Putnam Global Technology and Siit Screened World, you can compare the effects of market volatilities on Putnam Global and Siit Screened 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 Siit Screened. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Global and Siit Screened.

Diversification Opportunities for Putnam Global and Siit Screened

0.95

Correlation Coefficient

Putnam Global  Siit Screened

Almost no diversification

The 3 months correlation between Putnam and Siit is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Global Technology and Siit Screened World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Screened World 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 Technology are associated (or correlated) with Siit Screened. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Screened World has no effect on the direction of Putnam Global i.e., Putnam Global and Siit Screened go up and down completely randomly.

Pair Corralation between Putnam Global and Siit Screened

Assuming the 90 days horizon Putnam Global Technology is expected to generate 1.82 times more return on investment than Siit Screened. However, Putnam Global is 1.82 times more volatile than Siit Screened World. It trades about 0.26 of its potential returns per unit of risk. Siit Screened World is currently generating about 0.17 per unit of risk. 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	Very Strong
Accuracy	100.0%
Values	Daily Returns

Putnam Global Technology  vs.  Siit Screened World

Putnam Global Technology

Risk-Adjusted Performance

Solid

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

Siit Screened World

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Siit Screened World are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Siit Screened may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Putnam Global and Siit Screened

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

The idea behind Putnam Global Technology and Siit Screened World 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.