Correlation Between Salesforce and Putnam Floating
Can any of the company-specific risk be diversified away by investing in both Salesforce 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 Salesforce and Putnam Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Putnam Floating Rate, you can compare the effects of market volatilities on Salesforce 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 Salesforce with a short position of Putnam Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Putnam Floating.
Diversification Opportunities for Salesforce and Putnam Floating
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Salesforce and Putnam is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce 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 Salesforce 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 Salesforce 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 Salesforce i.e., Salesforce and Putnam Floating go up and down completely randomly.
Pair Corralation between Salesforce and Putnam Floating
Considering the 90-day investment horizon Salesforce is expected to generate 11.72 times more return on investment than Putnam Floating. However, Salesforce is 11.72 times more volatile than Putnam Floating Rate. It trades about 0.17 of its potential returns per unit of risk. Putnam Floating Rate is currently generating about 0.16 per unit of risk. If you would invest 23,371 in Salesforce on August 29, 2024 and sell it today you would earn a total of 9,630 from holding Salesforce or generate 41.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salesforce vs. Putnam Floating Rate
Performance |
| Timeline |
| Salesforce |
| Putnam Floating Rate |
Salesforce and Putnam Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Putnam Floating
The main advantage of trading using opposite Salesforce and Putnam Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce 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.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| Putnam Floating vs. Floating Rate Fund | Putnam Floating vs. Lord Abbett Inv | Putnam Floating vs. HUMANA INC | Putnam Floating vs. Aquagold International |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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