Correlation Between Putnam Money and The Hartford
Can any of the company-specific risk be diversified away by investing in both Putnam Money and The Hartford 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 The Hartford 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 The Hartford Growth, you can compare the effects of market volatilities on Putnam Money and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Money and The Hartford.
Diversification Opportunities for Putnam Money and The Hartford
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Putnam and The is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Money Market and The Hartford Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Growth 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Growth has no effect on the direction of Putnam Money i.e., Putnam Money and The Hartford go up and down completely randomly.
Pair Corralation between Putnam Money and The Hartford
Assuming the 90 days horizon Putnam Money is expected to generate 21.43 times less return on investment than The Hartford. But when comparing it to its historical volatility, Putnam Money Market is 14.69 times less risky than The Hartford. It trades about 0.09 of its potential returns per unit of risk. The Hartford Growth is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5,659 in The Hartford Growth on October 26, 2024 and sell it today you would earn a total of 1,271 from holding The Hartford Growth or generate 22.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.4% |
| Values | Daily Returns |
Putnam Money Market vs. The Hartford Growth
Performance |
| Timeline |
| Putnam Money Market |
| Hartford Growth |
Putnam Money and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Money and The Hartford
The main advantage of trading using opposite Putnam Money and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Money position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Putnam Money vs. T Rowe Price | Putnam Money vs. T Rowe Price | Putnam Money vs. Siit High Yield | Putnam Money vs. Artisan High Income |
| The Hartford vs. Franklin Government Money | The Hartford vs. Vanguard Money Market | The Hartford vs. Chestnut Street Exchange | The Hartford vs. Putnam Money Market |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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