Correlation Between Blackrock Floating and Putnam Master
Can any of the company-specific risk be diversified away by investing in both Blackrock Floating and Putnam Master 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 Floating and Putnam Master into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Floating Rate and Putnam Master Intermediate, you can compare the effects of market volatilities on Blackrock Floating and Putnam Master 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 Floating with a short position of Putnam Master. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Floating and Putnam Master.
Diversification Opportunities for Blackrock Floating and Putnam Master
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blackrock and Putnam is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Floating Rate and Putnam Master Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Master Interm and Blackrock Floating 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 Floating Rate are associated (or correlated) with Putnam Master. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Master Interm has no effect on the direction of Blackrock Floating i.e., Blackrock Floating and Putnam Master go up and down completely randomly.
Pair Corralation between Blackrock Floating and Putnam Master
Considering the 90-day investment horizon Blackrock Floating Rate is expected to generate 0.86 times more return on investment than Putnam Master. However, Blackrock Floating Rate is 1.17 times less risky than Putnam Master. It trades about 0.12 of its potential returns per unit of risk. Putnam Master Intermediate is currently generating about 0.0 per unit of risk. If you would invest 1,379 in Blackrock Floating Rate on September 2, 2024 and sell it today you would earn a total of 19.00 from holding Blackrock Floating Rate or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Floating Rate vs. Putnam Master Intermediate
Performance |
| Timeline |
| Blackrock Floating Rate |
| Putnam Master Interm |
Blackrock Floating and Putnam Master Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Floating and Putnam Master
The main advantage of trading using opposite Blackrock Floating and Putnam Master positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Floating position performs unexpectedly, Putnam Master 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 Master will offset losses from the drop in Putnam Master's long position.| Blackrock Floating vs. BlackRock Floating Rate | Blackrock Floating vs. Eaton Vance Floating | Blackrock Floating vs. Eaton Vance Senior | Blackrock Floating vs. Nuveen Floating Rate |
| Putnam Master vs. MFS High Income | Putnam Master vs. MFS Investment Grade | Putnam Master vs. Eaton Vance National | Putnam Master vs. Invesco High Income |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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