Correlation Between Massmutual Premier and Putnam Floating
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier 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 Massmutual Premier and Putnam Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Premier Diversified and Putnam Floating Rate, you can compare the effects of market volatilities on Massmutual Premier 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 Massmutual Premier with a short position of Putnam Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Putnam Floating.
Diversification Opportunities for Massmutual Premier and Putnam Floating
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Massmutual and Putnam is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier Diversified 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 Massmutual Premier 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 Massmutual Premier Diversified 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 Massmutual Premier i.e., Massmutual Premier and Putnam Floating go up and down completely randomly.
Pair Corralation between Massmutual Premier and Putnam Floating
Assuming the 90 days horizon Massmutual Premier is expected to generate 2.76 times less return on investment than Putnam Floating. In addition to that, Massmutual Premier is 2.01 times more volatile than Putnam Floating Rate. It trades about 0.04 of its total potential returns per unit of risk. Putnam Floating Rate is currently generating about 0.21 per unit of volatility. If you would invest 659.00 in Putnam Floating Rate on September 4, 2024 and sell it today you would earn a total of 142.00 from holding Putnam Floating Rate or generate 21.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Massmutual Premier Diversified vs. Putnam Floating Rate
Performance |
| Timeline |
| Massmutual Premier |
| Putnam Floating Rate |
Massmutual Premier and Putnam Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Premier and Putnam Floating
The main advantage of trading using opposite Massmutual Premier and Putnam Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier 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.| Massmutual Premier vs. Eic Value Fund | Massmutual Premier vs. Commonwealth Global Fund | Massmutual Premier vs. Semiconductor Ultrasector Profund | Massmutual Premier vs. Issachar Fund Class |
| Putnam Floating vs. Putnam Equity Income | Putnam Floating vs. Putnam Tax Exempt | Putnam Floating vs. Putnam Floating Rate | Putnam Floating 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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