Correlation Between Putnam High and Putnam Floating
Can any of the company-specific risk be diversified away by investing in both Putnam High and Putnam Floating 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 High and Putnam Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam High Yield and Putnam Floating Rate, you can compare the effects of market volatilities on Putnam High and Putnam Floating 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 High with a short position of Putnam Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam High and Putnam Floating.
Diversification Opportunities for Putnam High and Putnam Floating
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Putnam and Putnam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Putnam High Yield and Putnam Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Floating Rate and Putnam High 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 High Yield are associated (or correlated) with Putnam Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Floating Rate has no effect on the direction of Putnam High i.e., Putnam High and Putnam Floating go up and down completely randomly.
Pair Corralation between Putnam High and Putnam Floating
If you would invest 795.00 in Putnam Floating Rate on August 24, 2024 and sell it today you would earn a total of 6.00 from holding Putnam Floating Rate or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Putnam High Yield vs. Putnam Floating Rate
Performance |
| Timeline |
| Putnam High Yield |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Putnam Floating Rate |
Putnam High and Putnam Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam High and Putnam Floating
The main advantage of trading using opposite Putnam High and Putnam Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam High position performs unexpectedly, Putnam Floating 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 Putnam Floating will offset losses from the drop in Putnam Floating's long position.| Putnam High vs. Financials Ultrasector Profund | Putnam High vs. Goldman Sachs Financial | Putnam High vs. Prudential Jennison Financial | Putnam High vs. John Hancock Financial |
| Putnam Floating vs. Scharf Global Opportunity | Putnam Floating vs. Kinetics Global Fund | Putnam Floating vs. Morgan Stanley Global | Putnam Floating vs. Ab Global Bond |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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