Correlation Between Putnam Money and One Choice
Can any of the company-specific risk be diversified away by investing in both Putnam Money and One Choice 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 Money and One Choice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Money Market and One Choice 2050, you can compare the effects of market volatilities on Putnam Money and One Choice 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 Money with a short position of One Choice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Money and One Choice.
Diversification Opportunities for Putnam Money and One Choice
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Putnam and One is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Money Market and One Choice 2050 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Choice 2050 and Putnam Money 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 Money Market are associated (or correlated) with One Choice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Choice 2050 has no effect on the direction of Putnam Money i.e., Putnam Money and One Choice go up and down completely randomly.
Pair Corralation between Putnam Money and One Choice
Assuming the 90 days horizon Putnam Money is expected to generate 3.42 times less return on investment than One Choice. But when comparing it to its historical volatility, Putnam Money Market is 4.15 times less risky than One Choice. It trades about 0.14 of its potential returns per unit of risk. One Choice 2050 is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,290 in One Choice 2050 on September 12, 2024 and sell it today you would earn a total of 297.00 from holding One Choice 2050 or generate 23.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Money Market vs. One Choice 2050
Performance |
| Timeline |
| Putnam Money Market |
| One Choice 2050 |
Putnam Money and One Choice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Money and One Choice
The main advantage of trading using opposite Putnam Money and One Choice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Money position performs unexpectedly, One Choice 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 One Choice will offset losses from the drop in One Choice's long position.| Putnam Money vs. Vanguard Total Stock | Putnam Money vs. Vanguard 500 Index | Putnam Money vs. Vanguard Total Stock | Putnam Money vs. Vanguard Total Stock |
| One Choice vs. Elfun Government Money | One Choice vs. The Gabelli Money | One Choice vs. Putnam Money Market | One Choice vs. Money Market Obligations |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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