Correlation Between Putnam Equity and Putnam Minnesota
Can any of the company-specific risk be diversified away by investing in both Putnam Equity and Putnam Minnesota 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 Equity and Putnam Minnesota into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Equity Income and Putnam Minnesota Tax, you can compare the effects of market volatilities on Putnam Equity and Putnam Minnesota 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 Equity with a short position of Putnam Minnesota. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Equity and Putnam Minnesota.
Diversification Opportunities for Putnam Equity and Putnam Minnesota
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Putnam and Putnam is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Equity Income and Putnam Minnesota Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Minnesota Tax and Putnam Equity 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 Equity Income are associated (or correlated) with Putnam Minnesota. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Minnesota Tax has no effect on the direction of Putnam Equity i.e., Putnam Equity and Putnam Minnesota go up and down completely randomly.
Pair Corralation between Putnam Equity and Putnam Minnesota
Assuming the 90 days horizon Putnam Equity Income is expected to generate 2.14 times more return on investment than Putnam Minnesota. However, Putnam Equity is 2.14 times more volatile than Putnam Minnesota Tax. It trades about 0.26 of its potential returns per unit of risk. Putnam Minnesota Tax is currently generating about 0.19 per unit of risk. If you would invest 3,725 in Putnam Equity Income on August 31, 2024 and sell it today you would earn a total of 154.00 from holding Putnam Equity Income or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Equity Income vs. Putnam Minnesota Tax
Performance |
| Timeline |
| Putnam Equity Income |
| Putnam Minnesota Tax |
Putnam Equity and Putnam Minnesota Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Equity and Putnam Minnesota
The main advantage of trading using opposite Putnam Equity and Putnam Minnesota positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Equity position performs unexpectedly, Putnam Minnesota 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 Minnesota will offset losses from the drop in Putnam Minnesota's long position.| Putnam Equity vs. Dodge Cox Stock | Putnam Equity vs. American Mutual Fund | Putnam Equity vs. American Funds American | Putnam Equity vs. American Funds American |
| Putnam Minnesota vs. Ultramid Cap Profund Ultramid Cap | Putnam Minnesota vs. Royce Opportunity Fund | Putnam Minnesota vs. Fidelity Small Cap | Putnam Minnesota vs. Mid Cap Value Profund |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |