Correlation Between Nuveen Ohio and Putnam Managed
Can any of the company-specific risk be diversified away by investing in both Nuveen Ohio 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 Nuveen Ohio and Putnam Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Ohio Quality and Putnam Managed Municipal, you can compare the effects of market volatilities on Nuveen Ohio 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 Nuveen Ohio with a short position of Putnam Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Ohio and Putnam Managed.
Diversification Opportunities for Nuveen Ohio and Putnam Managed
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nuveen and Putnam is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Ohio Quality 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 Nuveen Ohio 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 Nuveen Ohio Quality 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 Nuveen Ohio i.e., Nuveen Ohio and Putnam Managed go up and down completely randomly.
Pair Corralation between Nuveen Ohio and Putnam Managed
If you would invest 565.00 in Putnam Managed Municipal on September 4, 2024 and sell it today you would earn a total of 71.00 from holding Putnam Managed Municipal or generate 12.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Nuveen Ohio Quality vs. Putnam Managed Municipal
Performance |
| Timeline |
| Nuveen Ohio Quality |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Putnam Managed Municipal |
Nuveen Ohio and Putnam Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Ohio and Putnam Managed
The main advantage of trading using opposite Nuveen Ohio and Putnam Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Ohio 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.| Nuveen Ohio vs. BlackRock Virginia MBT | Nuveen Ohio vs. Western Asset Managed | Nuveen Ohio vs. Nuveen Municipal Credit | Nuveen Ohio vs. Nuveen Core Equity |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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