Correlation Between Nuveen Minnesota and Putnam Growth
Can any of the company-specific risk be diversified away by investing in both Nuveen Minnesota and Putnam Growth 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 Growth 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 Growth Opportunities, you can compare the effects of market volatilities on Nuveen Minnesota and Putnam Growth 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 Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Minnesota and Putnam Growth.
Diversification Opportunities for Nuveen Minnesota and Putnam Growth
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nuveen and Putnam is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Minnesota Municipal and Putnam Growth Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Growth Opport 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 Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Growth Opport has no effect on the direction of Nuveen Minnesota i.e., Nuveen Minnesota and Putnam Growth go up and down completely randomly.
Pair Corralation between Nuveen Minnesota and Putnam Growth
Assuming the 90 days horizon Nuveen Minnesota Municipal is expected to generate 0.21 times more return on investment than Putnam Growth. However, Nuveen Minnesota Municipal is 4.8 times less risky than Putnam Growth. It trades about 0.15 of its potential returns per unit of risk. Putnam Growth Opportunities is currently generating about 0.0 per unit of risk. If you would invest 1,051 in Nuveen Minnesota Municipal on September 3, 2024 and sell it today you would earn a total of 39.00 from holding Nuveen Minnesota Municipal or generate 3.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Minnesota Municipal vs. Putnam Growth Opportunities
Performance |
| Timeline |
| Nuveen Minnesota Mun |
| Putnam Growth Opport |
Nuveen Minnesota and Putnam Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Minnesota and Putnam Growth
The main advantage of trading using opposite Nuveen Minnesota and Putnam Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Minnesota position performs unexpectedly, Putnam Growth 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 Growth will offset losses from the drop in Putnam Growth's long position.| Nuveen Minnesota vs. Franklin Minnesota Tax Free | Nuveen Minnesota vs. Franklin Minnesota Tax Free | Nuveen Minnesota vs. Columbia Minnesota Tax Exempt | Nuveen Minnesota vs. Columbia Minnesota Tax Exempt |
| Putnam Growth vs. Msift High Yield | Putnam Growth vs. Alpine High Yield | Putnam Growth vs. Prudential High Yield | Putnam Growth vs. Ppm 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |