Correlation Between Putnam Tax and Putnam Ohio
Can any of the company-specific risk be diversified away by investing in both Putnam Tax and Putnam Ohio 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 Tax and Putnam Ohio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Tax Exempt and Putnam Ohio Tax, you can compare the effects of market volatilities on Putnam Tax and Putnam Ohio 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 Tax with a short position of Putnam Ohio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Tax and Putnam Ohio.
Diversification Opportunities for Putnam Tax and Putnam Ohio
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Putnam and Putnam is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Tax Exempt and Putnam Ohio Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Ohio Tax and Putnam Tax 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 Tax Exempt are associated (or correlated) with Putnam Ohio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Ohio Tax has no effect on the direction of Putnam Tax i.e., Putnam Tax and Putnam Ohio go up and down completely randomly.
Pair Corralation between Putnam Tax and Putnam Ohio
Assuming the 90 days horizon Putnam Tax Exempt is expected to under-perform the Putnam Ohio. In addition to that, Putnam Tax is 1.14 times more volatile than Putnam Ohio Tax. It trades about -0.01 of its total potential returns per unit of risk. Putnam Ohio Tax is currently generating about 0.0 per unit of volatility. If you would invest 834.00 in Putnam Ohio Tax on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Putnam Ohio Tax or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Tax Exempt vs. Putnam Ohio Tax
Performance |
| Timeline |
| Putnam Tax Exempt |
| Putnam Ohio Tax |
Putnam Tax and Putnam Ohio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Tax and Putnam Ohio
The main advantage of trading using opposite Putnam Tax and Putnam Ohio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Tax position performs unexpectedly, Putnam Ohio 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 Ohio will offset losses from the drop in Putnam Ohio's long position.| Putnam Tax vs. Columbia Global Technology | Putnam Tax vs. Towpath Technology | Putnam Tax vs. Goldman Sachs Technology | Putnam Tax vs. Global Technology Portfolio |
| Putnam Ohio vs. Putnam Equity Income | Putnam Ohio vs. Putnam Tax Exempt | Putnam Ohio vs. Putnam Floating Rate | Putnam Ohio vs. Putnam High Yield |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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