Correlation Between Access Flex and Putnam Floating
Can any of the company-specific risk be diversified away by investing in both Access Flex 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 Access Flex and Putnam Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Access Flex High and Putnam Floating Rate, you can compare the effects of market volatilities on Access Flex 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 Access Flex with a short position of Putnam Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Access Flex and Putnam Floating.
Diversification Opportunities for Access Flex and Putnam Floating
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Access and Putnam is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Access Flex High 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 Access Flex 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 Access Flex High 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 Access Flex i.e., Access Flex and Putnam Floating go up and down completely randomly.
Pair Corralation between Access Flex and Putnam Floating
Assuming the 90 days horizon Access Flex High is expected to generate 2.37 times more return on investment than Putnam Floating. However, Access Flex is 2.37 times more volatile than Putnam Floating Rate. It trades about 0.2 of its potential returns per unit of risk. Putnam Floating Rate is currently generating about 0.27 per unit of risk. If you would invest 2,980 in Access Flex High on October 25, 2024 and sell it today you would earn a total of 32.00 from holding Access Flex High or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Access Flex High vs. Putnam Floating Rate
Performance |
| Timeline |
| Access Flex High |
| Putnam Floating Rate |
Access Flex and Putnam Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Access Flex and Putnam Floating
The main advantage of trading using opposite Access Flex and Putnam Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Access Flex 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.| Access Flex vs. Retirement Living Through | Access Flex vs. Dimensional Retirement Income | Access Flex vs. Putnman Retirement Ready | Access Flex vs. Wilmington Trust Retirement |
| Putnam Floating vs. Virtus High Yield | Putnam Floating vs. Access Flex High | Putnam Floating vs. Msift High Yield | Putnam Floating vs. Prudential High Yield |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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