Correlation Between Franklin Federal and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Franklin Federal and Putnam Global 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 Franklin Federal and Putnam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Federal Limited Term and Putnam Global Incm, you can compare the effects of market volatilities on Franklin Federal and Putnam Global 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 Franklin Federal with a short position of Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Federal and Putnam Global.
Diversification Opportunities for Franklin Federal and Putnam Global
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between FRANKLIN and Putnam is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Federal Limited Term and Putnam Global Incm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Incm and Franklin Federal 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 Franklin Federal Limited Term are associated (or correlated) with Putnam Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Global Incm has no effect on the direction of Franklin Federal i.e., Franklin Federal and Putnam Global go up and down completely randomly.
Pair Corralation between Franklin Federal and Putnam Global
Assuming the 90 days horizon Franklin Federal Limited Term is expected to generate 0.32 times more return on investment than Putnam Global. However, Franklin Federal Limited Term is 3.11 times less risky than Putnam Global. It trades about 0.14 of its potential returns per unit of risk. Putnam Global Incm is currently generating about 0.03 per unit of risk. If you would invest 959.00 in Franklin Federal Limited Term on September 3, 2024 and sell it today you would earn a total of 75.00 from holding Franklin Federal Limited Term or generate 7.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Federal Limited Term vs. Putnam Global Incm
Performance |
| Timeline |
| Franklin Federal Lim |
| Putnam Global Incm |
Franklin Federal and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Federal and Putnam Global
The main advantage of trading using opposite Franklin Federal and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Federal position performs unexpectedly, Putnam Global 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 Global will offset losses from the drop in Putnam Global's long position.| Franklin Federal vs. Alpine High Yield | Franklin Federal vs. Guggenheim High Yield | Franklin Federal vs. Blackrock High Yield | Franklin Federal vs. Pace High Yield |
| Putnam Global vs. Pace High Yield | Putnam Global vs. Ab Global Risk | Putnam Global vs. Morningstar Aggressive Growth | Putnam Global vs. Ab Global Risk |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |