Correlation Between Pimco Funds and Putnam Floating
Can any of the company-specific risk be diversified away by investing in both Pimco Funds and Putnam Floating 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 Pimco Funds and Putnam Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Funds and Putnam Floating Rate, you can compare the effects of market volatilities on Pimco Funds and Putnam Floating 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 Pimco Funds with a short position of Putnam Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Funds and Putnam Floating.
Diversification Opportunities for Pimco Funds and Putnam Floating
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PIMCO and Putnam is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Funds and Putnam Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Floating Rate and Pimco Funds 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 Pimco Funds are associated (or correlated) with Putnam Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Floating Rate has no effect on the direction of Pimco Funds i.e., Pimco Funds and Putnam Floating go up and down completely randomly.
Pair Corralation between Pimco Funds and Putnam Floating
If you would invest 794.00 in Putnam Floating Rate on August 31, 2024 and sell it today you would earn a total of 7.00 from holding Putnam Floating Rate or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Funds vs. Putnam Floating Rate
Performance |
| Timeline |
| Pimco Funds |
| Putnam Floating Rate |
Pimco Funds and Putnam Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Funds and Putnam Floating
The main advantage of trading using opposite Pimco Funds and Putnam Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Funds position performs unexpectedly, Putnam Floating 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 Floating will offset losses from the drop in Putnam Floating's long position.| Pimco Funds vs. Vanguard Total Stock | Pimco Funds vs. Vanguard 500 Index | Pimco Funds vs. Vanguard Total Stock | Pimco Funds vs. Vanguard Total Stock |
| Putnam Floating vs. Pimco Funds | Putnam Floating vs. Dws Government Money | Putnam Floating vs. Cref Money Market | Putnam Floating vs. John Hancock Money |
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.
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