Correlation Between BlackRock Health and Putnam High
Can any of the company-specific risk be diversified away by investing in both BlackRock Health and Putnam High 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 BlackRock Health and Putnam High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlackRock Health Sciences and Putnam High Income, you can compare the effects of market volatilities on BlackRock Health and Putnam High 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 BlackRock Health with a short position of Putnam High. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock Health and Putnam High.
Diversification Opportunities for BlackRock Health and Putnam High
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BlackRock and Putnam is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock Health Sciences and Putnam High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam High Income and BlackRock Health 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 BlackRock Health Sciences are associated (or correlated) with Putnam High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam High Income has no effect on the direction of BlackRock Health i.e., BlackRock Health and Putnam High go up and down completely randomly.
Pair Corralation between BlackRock Health and Putnam High
Considering the 90-day investment horizon BlackRock Health Sciences is expected to under-perform the Putnam High. In addition to that, BlackRock Health is 2.06 times more volatile than Putnam High Income. It trades about -0.14 of its total potential returns per unit of risk. Putnam High Income is currently generating about 0.18 per unit of volatility. If you would invest 660.00 in Putnam High Income on August 28, 2024 and sell it today you would earn a total of 12.00 from holding Putnam High Income or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlackRock Health Sciences vs. Putnam High Income
Performance |
| Timeline |
| BlackRock Health Sciences |
| Putnam High Income |
BlackRock Health and Putnam High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlackRock Health and Putnam High
The main advantage of trading using opposite BlackRock Health and Putnam High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock Health position performs unexpectedly, Putnam High 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 High will offset losses from the drop in Putnam High's long position.| BlackRock Health vs. Eaton Vance Enhanced | BlackRock Health vs. Blackrock Enhanced Capital | BlackRock Health vs. Cohen And Steers | BlackRock Health vs. BlackRock Science Tech |
| Putnam High vs. RiverNorthDoubleLine Strategic Opportunity | Putnam High vs. Cornerstone Strategic Return | Putnam High vs. Oxford Lane Capital | Putnam High vs. Horizon Technology Finance |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |