Correlation Between Putnam Floating and Pnc Emerging
Can any of the company-specific risk be diversified away by investing in both Putnam Floating and Pnc Emerging 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 Floating and Pnc Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Floating Rate and Pnc Emerging Markets, you can compare the effects of market volatilities on Putnam Floating and Pnc Emerging 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 Floating with a short position of Pnc Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Floating and Pnc Emerging.
Diversification Opportunities for Putnam Floating and Pnc Emerging
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Putnam and Pnc is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Floating Rate and Pnc Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pnc Emerging Markets and Putnam Floating 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 Floating Rate are associated (or correlated) with Pnc Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pnc Emerging Markets has no effect on the direction of Putnam Floating i.e., Putnam Floating and Pnc Emerging go up and down completely randomly.
Pair Corralation between Putnam Floating and Pnc Emerging
Assuming the 90 days horizon Putnam Floating Rate is expected to generate 0.08 times more return on investment than Pnc Emerging. However, Putnam Floating Rate is 12.65 times less risky than Pnc Emerging. It trades about 0.22 of its potential returns per unit of risk. Pnc Emerging Markets is currently generating about 0.01 per unit of risk. If you would invest 799.00 in Putnam Floating Rate on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Putnam Floating Rate or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Floating Rate vs. Pnc Emerging Markets
Performance |
| Timeline |
| Putnam Floating Rate |
| Pnc Emerging Markets |
Putnam Floating and Pnc Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Floating and Pnc Emerging
The main advantage of trading using opposite Putnam Floating and Pnc Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Floating position performs unexpectedly, Pnc Emerging 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 Pnc Emerging will offset losses from the drop in Pnc Emerging's long position.| Putnam Floating vs. Putnam Equity Income | Putnam Floating vs. Putnam Tax Exempt | Putnam Floating vs. Putnam High Yield | Putnam Floating vs. Putnam Floating Rate |
| Pnc Emerging vs. Federated Emerging Market | Pnc Emerging vs. Federated Mdt All | Pnc Emerging vs. Federated Mdt Balanced | Pnc Emerging vs. Federated Global Allocation |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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