Correlation Between Putnam Money and City National
Can any of the company-specific risk be diversified away by investing in both Putnam Money and City National 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 City National 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 City National Rochdale, you can compare the effects of market volatilities on Putnam Money and City National 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 City National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Money and City National.
Diversification Opportunities for Putnam Money and City National
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Putnam and City is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Money Market and City National Rochdale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City National Rochdale 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 City National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City National Rochdale has no effect on the direction of Putnam Money i.e., Putnam Money and City National go up and down completely randomly.
Pair Corralation between Putnam Money and City National
If you would invest 1,933 in City National Rochdale on October 22, 2024 and sell it today you would earn a total of 16.00 from holding City National Rochdale or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Putnam Money Market vs. City National Rochdale
Performance |
| Timeline |
| Putnam Money Market |
| City National Rochdale |
Putnam Money and City National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Money and City National
The main advantage of trading using opposite Putnam Money and City National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Money position performs unexpectedly, City National 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 City National will offset losses from the drop in City National's long position.| Putnam Money vs. Franklin Small Cap | Putnam Money vs. Glg Intl Small | Putnam Money vs. Ab Small Cap | Putnam Money vs. Lkcm Small Cap |
| City National vs. Fidelity Advisor Energy | City National vs. Franklin Natural Resources | City National vs. Goldman Sachs Mlp | City National vs. Tortoise Energy Independence |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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