Correlation Between New America and Putnam Managed
Can any of the company-specific risk be diversified away by investing in both New America and Putnam Managed 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 New America and Putnam Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New America High and Putnam Managed Municipal, you can compare the effects of market volatilities on New America and Putnam Managed 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 New America with a short position of Putnam Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of New America and Putnam Managed.
Diversification Opportunities for New America and Putnam Managed
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between New and Putnam is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding New America High and Putnam Managed Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Managed Municipal and New America 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 New America High are associated (or correlated) with Putnam Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Managed Municipal has no effect on the direction of New America i.e., New America and Putnam Managed go up and down completely randomly.
Pair Corralation between New America and Putnam Managed
Considering the 90-day investment horizon New America is expected to generate 1.23 times less return on investment than Putnam Managed. But when comparing it to its historical volatility, New America High is 1.93 times less risky than Putnam Managed. It trades about 0.18 of its potential returns per unit of risk. Putnam Managed Municipal is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 624.00 in Putnam Managed Municipal on August 31, 2024 and sell it today you would earn a total of 12.00 from holding Putnam Managed Municipal or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
New America High vs. Putnam Managed Municipal
Performance |
| Timeline |
| New America High |
| Putnam Managed Municipal |
New America and Putnam Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New America and Putnam Managed
The main advantage of trading using opposite New America and Putnam Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New America position performs unexpectedly, Putnam Managed 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 Managed will offset losses from the drop in Putnam Managed's long position.| New America vs. Pioneer Municipal High | New America vs. DWS Municipal Income | New America vs. RiverNorth Specialty Finance | New America vs. Putnam Managed Municipal |
| Putnam Managed vs. MFS Investment Grade | Putnam Managed vs. Eaton Vance National | Putnam Managed vs. Blackrock Munivest | Putnam Managed vs. DTF Tax Free |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |