Correlation Between Putnam Retirement and Mfs Total
Can any of the company-specific risk be diversified away by investing in both Putnam Retirement and Mfs Total 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 Putnam Retirement and Mfs Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Retirement Advantage and Mfs Total Return, you can compare the effects of market volatilities on Putnam Retirement and Mfs Total 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 Putnam Retirement with a short position of Mfs Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Retirement and Mfs Total.
Diversification Opportunities for Putnam Retirement and Mfs Total
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Putnam and Mfs is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Retirement Advantage and Mfs Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Total Return and Putnam Retirement 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 Putnam Retirement Advantage are associated (or correlated) with Mfs Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Total Return has no effect on the direction of Putnam Retirement i.e., Putnam Retirement and Mfs Total go up and down completely randomly.
Pair Corralation between Putnam Retirement and Mfs Total
Assuming the 90 days horizon Putnam Retirement Advantage is expected to under-perform the Mfs Total. In addition to that, Putnam Retirement is 6.34 times more volatile than Mfs Total Return. It trades about -0.21 of its total potential returns per unit of risk. Mfs Total Return is currently generating about -0.56 per unit of volatility. If you would invest 958.00 in Mfs Total Return on October 11, 2024 and sell it today you would lose (25.00) from holding Mfs Total Return or give up 2.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Retirement Advantage vs. Mfs Total Return
Performance |
| Timeline |
| Putnam Retirement |
| Mfs Total Return |
Putnam Retirement and Mfs Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Retirement and Mfs Total
The main advantage of trading using opposite Putnam Retirement and Mfs Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Retirement position performs unexpectedly, Mfs Total 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 Mfs Total will offset losses from the drop in Mfs Total's long position.| Putnam Retirement vs. Barings High Yield | Putnam Retirement vs. Fidelity Focused High | Putnam Retirement vs. Needham Aggressive Growth | Putnam Retirement vs. Millerhoward High Income |
| Mfs Total vs. College Retirement Equities | Mfs Total vs. Moderate Balanced Allocation | Mfs Total vs. Sierra E Retirement | Mfs Total vs. Putnam Retirement Advantage |
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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