Correlation Between Barclays Capital and Putnam Managed
Can any of the company-specific risk be diversified away by investing in both Barclays Capital 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 Barclays Capital and Putnam Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and Putnam Managed Municipal, you can compare the effects of market volatilities on Barclays Capital 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 Barclays Capital with a short position of Putnam Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and Putnam Managed.
Diversification Opportunities for Barclays Capital and Putnam Managed
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barclays and Putnam is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital 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 Barclays Capital 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 Barclays Capital 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 Barclays Capital i.e., Barclays Capital and Putnam Managed go up and down completely randomly.
Pair Corralation between Barclays Capital and Putnam Managed
If you would invest 626.00 in Putnam Managed Municipal on September 1, 2024 and sell it today you would earn a total of 10.00 from holding Putnam Managed Municipal or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Barclays Capital vs. Putnam Managed Municipal
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Putnam Managed Municipal |
Barclays Capital and Putnam Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and Putnam Managed
The main advantage of trading using opposite Barclays Capital and Putnam Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital 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.| Barclays Capital vs. Vanguard Total Stock | Barclays Capital vs. SPDR SP 500 | Barclays Capital vs. iShares Core SP | Barclays Capital vs. Vanguard Total Bond |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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