Correlation Between Putnam High and Federated Hermes
Can any of the company-specific risk be diversified away by investing in both Putnam High and Federated Hermes 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 High and Federated Hermes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam High Income and Federated Hermes Core, you can compare the effects of market volatilities on Putnam High and Federated Hermes 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 High with a short position of Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam High and Federated Hermes.
Diversification Opportunities for Putnam High and Federated Hermes
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Putnam and Federated is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Putnam High Income and Federated Hermes Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Hermes Core and Putnam High 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 High Income are associated (or correlated) with Federated Hermes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Hermes Core has no effect on the direction of Putnam High i.e., Putnam High and Federated Hermes go up and down completely randomly.
Pair Corralation between Putnam High and Federated Hermes
If you would invest 594.00 in Putnam High Income on September 12, 2024 and sell it today you would earn a total of 84.00 from holding Putnam High Income or generate 14.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Putnam High Income vs. Federated Hermes Core
Performance |
| Timeline |
| Putnam High Income |
| Federated Hermes Core |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Putnam High and Federated Hermes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam High and Federated Hermes
The main advantage of trading using opposite Putnam High and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam High position performs unexpectedly, Federated Hermes 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 Federated Hermes will offset losses from the drop in Federated Hermes' long position.| Putnam High vs. Oxford Lane Capital | Putnam High vs. Orchid Island Capital | Putnam High vs. Guggenheim Strategic Opportunities | Putnam High vs. Stone Harbor Emerging |
| Federated Hermes vs. Western Asset Diversified | Federated Hermes vs. Calvert Developed Market | Federated Hermes vs. Barings Emerging Markets | Federated Hermes vs. Aqr Long Short Equity |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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