Correlation Between MFS Investment and Putnam Managed
Can any of the company-specific risk be diversified away by investing in both MFS Investment and Putnam Managed 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 MFS Investment and Putnam Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFS Investment Grade and Putnam Managed Municipal, you can compare the effects of market volatilities on MFS Investment and Putnam Managed 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 MFS Investment with a short position of Putnam Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Investment and Putnam Managed.
Diversification Opportunities for MFS Investment and Putnam Managed
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MFS and Putnam is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding MFS Investment Grade and Putnam Managed Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Managed Municipal and MFS Investment 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 MFS Investment Grade are associated (or correlated) with Putnam Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Managed Municipal has no effect on the direction of MFS Investment i.e., MFS Investment and Putnam Managed go up and down completely randomly.
Pair Corralation between MFS Investment and Putnam Managed
Considering the 90-day investment horizon MFS Investment Grade is expected to generate 0.76 times more return on investment than Putnam Managed. However, MFS Investment Grade is 1.31 times less risky than Putnam Managed. It trades about 0.05 of its potential returns per unit of risk. Putnam Managed Municipal is currently generating about 0.0 per unit of risk. If you would invest 702.00 in MFS Investment Grade on August 27, 2024 and sell it today you would earn a total of 108.00 from holding MFS Investment Grade or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MFS Investment Grade vs. Putnam Managed Municipal
Performance |
| Timeline |
| MFS Investment Grade |
| Putnam Managed Municipal |
MFS Investment and Putnam Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Investment and Putnam Managed
The main advantage of trading using opposite MFS Investment and Putnam Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Investment position performs unexpectedly, Putnam Managed 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 Managed will offset losses from the drop in Putnam Managed's long position.| MFS Investment vs. PowerUp Acquisition Corp | MFS Investment vs. Aurora Innovation | MFS Investment vs. HUMANA INC | MFS Investment vs. Aquagold International |
| Putnam Managed vs. MFS Investment Grade | Putnam Managed vs. Eaton Vance National | Putnam Managed vs. Blackrock Munivest | Putnam Managed vs. DTF Tax Free |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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