Correlation Between Fidelity Sai and Putnam Floating
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai 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 Fidelity Sai and Putnam Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Sai Convertible and Putnam Floating Rate, you can compare the effects of market volatilities on Fidelity Sai 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 Fidelity Sai with a short position of Putnam Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Putnam Floating.
Diversification Opportunities for Fidelity Sai and Putnam Floating
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Putnam is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible 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 Fidelity Sai 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 Fidelity Sai Convertible 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 Fidelity Sai i.e., Fidelity Sai and Putnam Floating go up and down completely randomly.
Pair Corralation between Fidelity Sai and Putnam Floating
Assuming the 90 days horizon Fidelity Sai Convertible is expected to generate 0.68 times more return on investment than Putnam Floating. However, Fidelity Sai Convertible is 1.47 times less risky than Putnam Floating. It trades about 0.47 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 1,033 in Fidelity Sai Convertible on September 2, 2024 and sell it today you would earn a total of 63.00 from holding Fidelity Sai Convertible or generate 6.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Sai Convertible vs. Putnam Floating Rate
Performance |
| Timeline |
| Fidelity Sai Convertible |
| Putnam Floating Rate |
Fidelity Sai and Putnam Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and Putnam Floating
The main advantage of trading using opposite Fidelity Sai and Putnam Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai 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.| Fidelity Sai vs. Chase Growth Fund | Fidelity Sai vs. Small Midcap Dividend Income | Fidelity Sai vs. Vanguard Growth And | Fidelity Sai vs. Qs Growth Fund |
| Putnam Floating vs. Putnam Equity Income | Putnam Floating vs. Putnam Tax Exempt | Putnam Floating vs. Putnam High Yield | Putnam Floating vs. Putnam Floating Rate |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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