Correlation Between Putnam High and Blackrock Muniyield
Can any of the company-specific risk be diversified away by investing in both Putnam High and Blackrock Muniyield 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 Blackrock Muniyield 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 Blackrock Muniyield Mi, you can compare the effects of market volatilities on Putnam High and Blackrock Muniyield 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 Blackrock Muniyield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam High and Blackrock Muniyield.
Diversification Opportunities for Putnam High and Blackrock Muniyield
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Putnam and Blackrock is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Putnam High Income and Blackrock Muniyield Mi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muniyield 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 Blackrock Muniyield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muniyield has no effect on the direction of Putnam High i.e., Putnam High and Blackrock Muniyield go up and down completely randomly.
Pair Corralation between Putnam High and Blackrock Muniyield
Considering the 90-day investment horizon Putnam High Income is expected to generate 1.13 times more return on investment than Blackrock Muniyield. However, Putnam High is 1.13 times more volatile than Blackrock Muniyield Mi. It trades about 0.18 of its potential returns per unit of risk. Blackrock Muniyield Mi is currently generating about 0.2 per unit of risk. If you would invest 660.00 in Putnam High Income on August 28, 2024 and sell it today you would earn a total of 12.00 from holding Putnam High Income or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam High Income vs. Blackrock Muniyield Mi
Performance |
| Timeline |
| Putnam High Income |
| Blackrock Muniyield |
Putnam High and Blackrock Muniyield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam High and Blackrock Muniyield
The main advantage of trading using opposite Putnam High and Blackrock Muniyield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam High position performs unexpectedly, Blackrock Muniyield 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 Blackrock Muniyield will offset losses from the drop in Blackrock Muniyield's long position.| Putnam High vs. RiverNorthDoubleLine Strategic Opportunity | Putnam High vs. Cornerstone Strategic Return | Putnam High vs. Oxford Lane Capital | Putnam High vs. Horizon Technology Finance |
| Blackrock Muniyield vs. John Hancock Income | Blackrock Muniyield vs. MFS High Income | Blackrock Muniyield vs. MFS Investment Grade | Blackrock Muniyield vs. Blackrock Muniholdings Closed |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |