Correlation Between Nuveen Minnesota and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Nuveen Minnesota 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 Nuveen Minnesota and Putnam Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Minnesota Municipal and Putnam Global Income, you can compare the effects of market volatilities on Nuveen Minnesota 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 Nuveen Minnesota with a short position of Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Minnesota and Putnam Global.
Diversification Opportunities for Nuveen Minnesota and Putnam Global
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuveen and Putnam is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Minnesota Municipal and Putnam Global Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Income and Nuveen Minnesota 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 Nuveen Minnesota Municipal 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 Income has no effect on the direction of Nuveen Minnesota i.e., Nuveen Minnesota and Putnam Global go up and down completely randomly.
Pair Corralation between Nuveen Minnesota and Putnam Global
Assuming the 90 days horizon Nuveen Minnesota Municipal is expected to generate 0.72 times more return on investment than Putnam Global. However, Nuveen Minnesota Municipal is 1.39 times less risky than Putnam Global. It trades about 0.07 of its potential returns per unit of risk. Putnam Global Income is currently generating about 0.03 per unit of risk. If you would invest 1,003 in Nuveen Minnesota Municipal on September 4, 2024 and sell it today you would earn a total of 88.00 from holding Nuveen Minnesota Municipal or generate 8.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Minnesota Municipal vs. Putnam Global Income
Performance |
| Timeline |
| Nuveen Minnesota Mun |
| Putnam Global Income |
Nuveen Minnesota and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Minnesota and Putnam Global
The main advantage of trading using opposite Nuveen Minnesota and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Minnesota 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.| Nuveen Minnesota vs. Rational Strategic Allocation | Nuveen Minnesota vs. Scharf Global Opportunity | Nuveen Minnesota vs. Mirova Global Green | Nuveen Minnesota vs. Qs Global Equity |
| Putnam Global vs. Deutsche Health And | Putnam Global vs. Baillie Gifford Health | Putnam Global vs. Invesco Global Health | Putnam Global vs. Blackrock Health Sciences |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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