Correlation Between Bbh Intermediate and Putnam Tax
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate and Putnam Tax 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 Bbh Intermediate and Putnam Tax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Intermediate Municipal and Putnam Tax Exempt, you can compare the effects of market volatilities on Bbh Intermediate and Putnam Tax 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 Bbh Intermediate with a short position of Putnam Tax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and Putnam Tax.
Diversification Opportunities for Bbh Intermediate and Putnam Tax
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BBH and Putnam is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal and Putnam Tax Exempt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Tax Exempt and Bbh Intermediate 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 Bbh Intermediate Municipal are associated (or correlated) with Putnam Tax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Tax Exempt has no effect on the direction of Bbh Intermediate i.e., Bbh Intermediate and Putnam Tax go up and down completely randomly.
Pair Corralation between Bbh Intermediate and Putnam Tax
Assuming the 90 days horizon Bbh Intermediate is expected to generate 1.74 times less return on investment than Putnam Tax. But when comparing it to its historical volatility, Bbh Intermediate Municipal is 1.51 times less risky than Putnam Tax. It trades about 0.17 of its potential returns per unit of risk. Putnam Tax Exempt is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 786.00 in Putnam Tax Exempt on September 5, 2024 and sell it today you would earn a total of 12.00 from holding Putnam Tax Exempt or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. Putnam Tax Exempt
Performance |
| Timeline |
| Bbh Intermediate Mun |
| Putnam Tax Exempt |
Bbh Intermediate and Putnam Tax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and Putnam Tax
The main advantage of trading using opposite Bbh Intermediate and Putnam Tax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate position performs unexpectedly, Putnam Tax 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 Tax will offset losses from the drop in Putnam Tax's long position.| Bbh Intermediate vs. Bbh Limited Duration | Bbh Intermediate vs. Bbh Limited Duration | Bbh Intermediate vs. Bbh Partner Fund | Bbh Intermediate vs. Bbh Partner Fund |
| Putnam Tax vs. Putnam Equity Income | Putnam Tax vs. Putnam Floating Rate | Putnam Tax vs. Putnam High Yield | Putnam Tax vs. Putnam Floating Rate |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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