Correlation Between Thrivent High and Putnam Ultra
Can any of the company-specific risk be diversified away by investing in both Thrivent High and Putnam Ultra 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 Thrivent High and Putnam Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrivent High Yield and Putnam Ultra Short, you can compare the effects of market volatilities on Thrivent High and Putnam Ultra 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 Thrivent High with a short position of Putnam Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Putnam Ultra.
Diversification Opportunities for Thrivent High and Putnam Ultra
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Thrivent and Putnam is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Putnam Ultra Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Ultra Short and Thrivent High 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 Thrivent High Yield are associated (or correlated) with Putnam Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Ultra Short has no effect on the direction of Thrivent High i.e., Thrivent High and Putnam Ultra go up and down completely randomly.
Pair Corralation between Thrivent High and Putnam Ultra
Assuming the 90 days horizon Thrivent High Yield is expected to generate 2.11 times more return on investment than Putnam Ultra. However, Thrivent High is 2.11 times more volatile than Putnam Ultra Short. It trades about 0.22 of its potential returns per unit of risk. Putnam Ultra Short is currently generating about 0.21 per unit of risk. If you would invest 404.00 in Thrivent High Yield on September 1, 2024 and sell it today you would earn a total of 22.00 from holding Thrivent High Yield or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Thrivent High Yield vs. Putnam Ultra Short
Performance |
| Timeline |
| Thrivent High Yield |
| Putnam Ultra Short |
Thrivent High and Putnam Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Putnam Ultra
The main advantage of trading using opposite Thrivent High and Putnam Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Putnam Ultra 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 Ultra will offset losses from the drop in Putnam Ultra's long position.| Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Opportunity Income |
| Putnam Ultra vs. Putnam Equity Income | Putnam Ultra vs. Putnam Tax Exempt | Putnam Ultra vs. Putnam Floating Rate | Putnam Ultra vs. Putnam 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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