Correlation Between Putnam Money and Smallcap Fund
Can any of the company-specific risk be diversified away by investing in both Putnam Money and Smallcap Fund 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 Smallcap Fund 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 Smallcap Fund Fka, you can compare the effects of market volatilities on Putnam Money and Smallcap Fund 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 Smallcap Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Money and Smallcap Fund.
Diversification Opportunities for Putnam Money and Smallcap Fund
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Putnam and Smallcap is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Money Market and Smallcap Fund Fka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smallcap Fund Fka 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 Smallcap Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smallcap Fund Fka has no effect on the direction of Putnam Money i.e., Putnam Money and Smallcap Fund go up and down completely randomly.
Pair Corralation between Putnam Money and Smallcap Fund
If you would invest 2,551 in Smallcap Fund Fka on October 28, 2024 and sell it today you would earn a total of 137.00 from holding Smallcap Fund Fka or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Putnam Money Market vs. Smallcap Fund Fka
Performance |
| Timeline |
| Putnam Money Market |
| Smallcap Fund Fka |
Putnam Money and Smallcap Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Money and Smallcap Fund
The main advantage of trading using opposite Putnam Money and Smallcap Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Money position performs unexpectedly, Smallcap Fund 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 Smallcap Fund will offset losses from the drop in Smallcap Fund's long position.| Putnam Money vs. Ab Small Cap | Putnam Money vs. Goldman Sachs Smallmid | Putnam Money vs. Glg Intl Small | Putnam Money vs. Df Dent Small |
| Smallcap Fund vs. Ab Bond Inflation | Smallcap Fund vs. Tiaa Cref Inflation Linked Bond | Smallcap Fund vs. Credit Suisse Multialternative | Smallcap Fund vs. Abbey Capital Futures |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |