Correlation Between Bbh Intermediate and Putnam Multi
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate and Putnam Multi 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 Multi 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 Multi Cap Growth, you can compare the effects of market volatilities on Bbh Intermediate and Putnam Multi 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 Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and Putnam Multi.
Diversification Opportunities for Bbh Intermediate and Putnam Multi
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bbh and Putnam is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal and Putnam Multi Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Multi Cap 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 Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Multi Cap has no effect on the direction of Bbh Intermediate i.e., Bbh Intermediate and Putnam Multi go up and down completely randomly.
Pair Corralation between Bbh Intermediate and Putnam Multi
Assuming the 90 days horizon Bbh Intermediate is expected to generate 6.63 times less return on investment than Putnam Multi. But when comparing it to its historical volatility, Bbh Intermediate Municipal is 4.94 times less risky than Putnam Multi. It trades about 0.11 of its potential returns per unit of risk. Putnam Multi Cap Growth is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 9,860 in Putnam Multi Cap Growth on September 3, 2024 and sell it today you would earn a total of 3,203 from holding Putnam Multi Cap Growth or generate 32.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. Putnam Multi Cap Growth
Performance |
| Timeline |
| Bbh Intermediate Mun |
| Putnam Multi Cap |
Bbh Intermediate and Putnam Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and Putnam Multi
The main advantage of trading using opposite Bbh Intermediate and Putnam Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate position performs unexpectedly, Putnam Multi 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 Multi will offset losses from the drop in Putnam Multi's long position.| Bbh Intermediate vs. Franklin Growth Opportunities | Bbh Intermediate vs. Pace Large Growth | Bbh Intermediate vs. Ftfa Franklin Templeton Growth | Bbh Intermediate vs. Qs Moderate Growth |
| Putnam Multi vs. Touchstone Premium Yield | Putnam Multi vs. T Rowe Price | Putnam Multi vs. Multisector Bond Sma | Putnam Multi vs. Bbh Intermediate Municipal |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |