Correlation Between Fzsvmx and Putnam Floating
Can any of the company-specific risk be diversified away by investing in both Fzsvmx 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 Fzsvmx and Putnam Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fzsvmx and Putnam Floating Rate, you can compare the effects of market volatilities on Fzsvmx 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 Fzsvmx with a short position of Putnam Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fzsvmx and Putnam Floating.
Diversification Opportunities for Fzsvmx and Putnam Floating
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fzsvmx and Putnam is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Fzsvmx 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 Fzsvmx 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 Fzsvmx 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 Fzsvmx i.e., Fzsvmx and Putnam Floating go up and down completely randomly.
Pair Corralation between Fzsvmx and Putnam Floating
Assuming the 90 days trading horizon Fzsvmx is expected to generate 3.65 times more return on investment than Putnam Floating. However, Fzsvmx is 3.65 times more volatile than Putnam Floating Rate. It trades about 0.12 of its potential returns per unit of risk. Putnam Floating Rate is currently generating about 0.18 per unit of risk. If you would invest 1,069 in Fzsvmx on November 5, 2024 and sell it today you would earn a total of 11.00 from holding Fzsvmx or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.83% |
| Values | Daily Returns |
Fzsvmx vs. Putnam Floating Rate
Performance |
| Timeline |
| Fzsvmx |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Putnam Floating Rate |
Fzsvmx and Putnam Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fzsvmx and Putnam Floating
The main advantage of trading using opposite Fzsvmx and Putnam Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fzsvmx 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.| Fzsvmx vs. Schwab Government Money | Fzsvmx vs. Fidelity Advisor Financial | Fzsvmx vs. Voya Government Money | Fzsvmx vs. Blackstone Secured Lending |
| Putnam Floating vs. Barings Active Short | Putnam Floating vs. Qs Growth Fund | Putnam Floating vs. Federated Emerging Market | Putnam Floating vs. Versatile Bond Portfolio |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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