Correlation Between Putnam Floating and Putnam Msschustts
Can any of the company-specific risk be diversified away by investing in both Putnam Floating and Putnam Msschustts 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 Putnam Msschustts 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 Putnam Msschustts Tx, you can compare the effects of market volatilities on Putnam Floating and Putnam Msschustts 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 Putnam Msschustts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Floating and Putnam Msschustts.
Diversification Opportunities for Putnam Floating and Putnam Msschustts
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Putnam and Putnam is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Floating Rate and Putnam Msschustts Tx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Msschustts 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 Putnam Msschustts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Msschustts has no effect on the direction of Putnam Floating i.e., Putnam Floating and Putnam Msschustts go up and down completely randomly.
Pair Corralation between Putnam Floating and Putnam Msschustts
Assuming the 90 days horizon Putnam Floating Rate is expected to generate 0.68 times more return on investment than Putnam Msschustts. However, Putnam Floating Rate is 1.46 times less risky than Putnam Msschustts. It trades about 0.22 of its potential returns per unit of risk. Putnam Msschustts Tx is currently generating about 0.08 per unit of risk. If you would invest 738.00 in Putnam Floating Rate on August 31, 2024 and sell it today you would earn a total of 62.00 from holding Putnam Floating Rate or generate 8.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Floating Rate vs. Putnam Msschustts Tx
Performance |
| Timeline |
| Putnam Floating Rate |
| Putnam Msschustts |
Putnam Floating and Putnam Msschustts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Floating and Putnam Msschustts
The main advantage of trading using opposite Putnam Floating and Putnam Msschustts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Floating position performs unexpectedly, Putnam Msschustts 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 Msschustts will offset losses from the drop in Putnam Msschustts' long position.| Putnam Floating vs. Prudential Government Money | Putnam Floating vs. T Rowe Price | Putnam Floating vs. Blackrock Exchange Portfolio | Putnam Floating vs. T Rowe Price |
| Putnam Msschustts vs. Putnam Multi Cap Growth | Putnam Msschustts vs. Putnam Multi Cap Growth | Putnam Msschustts vs. Putnam Sustainable Future | Putnam Msschustts vs. Putnam Equity Income |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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