Correlation Between Mirova Global and Putnam Floating
Can any of the company-specific risk be diversified away by investing in both Mirova Global 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 Mirova Global and Putnam Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mirova Global Green and Putnam Floating Rate, you can compare the effects of market volatilities on Mirova Global 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 Mirova Global with a short position of Putnam Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirova Global and Putnam Floating.
Diversification Opportunities for Mirova Global and Putnam Floating
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mirova and Putnam is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Mirova Global Green 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 Mirova Global 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 Mirova Global Green 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 Mirova Global i.e., Mirova Global and Putnam Floating go up and down completely randomly.
Pair Corralation between Mirova Global and Putnam Floating
Assuming the 90 days horizon Mirova Global is expected to generate 4.24 times less return on investment than Putnam Floating. In addition to that, Mirova Global is 2.21 times more volatile than Putnam Floating Rate. It trades about 0.02 of its total potential returns per unit of risk. Putnam Floating Rate is currently generating about 0.19 per unit of volatility. If you would invest 672.00 in Putnam Floating Rate on August 29, 2024 and sell it today you would earn a total of 126.00 from holding Putnam Floating Rate or generate 18.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirova Global Green vs. Putnam Floating Rate
Performance |
| Timeline |
| Mirova Global Green |
| Putnam Floating Rate |
Mirova Global and Putnam Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirova Global and Putnam Floating
The main advantage of trading using opposite Mirova Global and Putnam Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirova Global 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.| Mirova Global vs. Vanguard Total International | Mirova Global vs. Dfa Five Year Global | Mirova Global vs. HUMANA INC | Mirova Global vs. Aquagold International |
| Putnam Floating vs. Kinetics Market Opportunities | Putnam Floating vs. Barings Active Short | Putnam Floating vs. Versatile Bond Portfolio | Putnam Floating vs. Mirova Global Green |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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