Correlation Between Rbb Fund and Putnam Floating
Can any of the company-specific risk be diversified away by investing in both Rbb Fund 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 Rbb Fund and Putnam Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rbb Fund and Putnam Floating Rate, you can compare the effects of market volatilities on Rbb Fund 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 Rbb Fund with a short position of Putnam Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rbb Fund and Putnam Floating.
Diversification Opportunities for Rbb Fund and Putnam Floating
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Rbb and Putnam is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Rbb Fund 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 Rbb Fund 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 Rbb Fund 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 Rbb Fund i.e., Rbb Fund and Putnam Floating go up and down completely randomly.
Pair Corralation between Rbb Fund and Putnam Floating
Assuming the 90 days horizon Rbb Fund is expected to generate 2.03 times less return on investment than Putnam Floating. In addition to that, Rbb Fund is 1.14 times more volatile than Putnam Floating Rate. It trades about 0.09 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 663.00 in Putnam Floating Rate on September 3, 2024 and sell it today you would earn a total of 138.00 from holding Putnam Floating Rate or generate 20.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rbb Fund vs. Putnam Floating Rate
Performance |
| Timeline |
| Rbb Fund |
| Putnam Floating Rate |
Rbb Fund and Putnam Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rbb Fund and Putnam Floating
The main advantage of trading using opposite Rbb Fund and Putnam Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rbb Fund 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.| Rbb Fund vs. Old Westbury Large | Rbb Fund vs. Touchstone Large Cap | Rbb Fund vs. Qs Global Equity | Rbb Fund vs. Scharf Global Opportunity |
| Putnam Floating vs. Rbb Fund | Putnam Floating vs. Fa 529 Aggressive | Putnam Floating vs. Volumetric Fund Volumetric | Putnam Floating vs. Arrow Managed Futures |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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