Correlation Between Blackrock Muniholdings and Putnam Managed
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniholdings 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 Blackrock Muniholdings and Putnam Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Muniholdings Ny and Putnam Managed Municipal, you can compare the effects of market volatilities on Blackrock Muniholdings 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 Blackrock Muniholdings with a short position of Putnam Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniholdings and Putnam Managed.
Diversification Opportunities for Blackrock Muniholdings and Putnam Managed
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blackrock and Putnam is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniholdings Ny 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 Blackrock Muniholdings 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 Blackrock Muniholdings Ny 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 Blackrock Muniholdings i.e., Blackrock Muniholdings and Putnam Managed go up and down completely randomly.
Pair Corralation between Blackrock Muniholdings and Putnam Managed
Considering the 90-day investment horizon Blackrock Muniholdings Ny is expected to generate 0.85 times more return on investment than Putnam Managed. However, Blackrock Muniholdings Ny is 1.18 times less risky than Putnam Managed. It trades about 0.23 of its potential returns per unit of risk. Putnam Managed Municipal is currently generating about 0.1 per unit of risk. If you would invest 1,061 in Blackrock Muniholdings Ny on September 1, 2024 and sell it today you would earn a total of 35.00 from holding Blackrock Muniholdings Ny or generate 3.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Muniholdings Ny vs. Putnam Managed Municipal
Performance |
| Timeline |
| Blackrock Muniholdings |
| Putnam Managed Municipal |
Blackrock Muniholdings and Putnam Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniholdings and Putnam Managed
The main advantage of trading using opposite Blackrock Muniholdings and Putnam Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniholdings 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.| Blackrock Muniholdings vs. Eaton Vance National | Blackrock Muniholdings vs. Invesco High Income | Blackrock Muniholdings vs. Nuveen California Select | Blackrock Muniholdings vs. MFS Investment Grade |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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