Correlation Between Putnam Floating and Putnam Ultra
Can any of the company-specific risk be diversified away by investing in both Putnam Floating and Putnam Ultra 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 Ultra 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 Ultra Short, you can compare the effects of market volatilities on Putnam Floating and Putnam Ultra 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 Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Floating and Putnam Ultra.
Diversification Opportunities for Putnam Floating and Putnam Ultra
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Putnam and Putnam is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Floating Rate and Putnam Ultra Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Ultra Short 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 Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Ultra Short has no effect on the direction of Putnam Floating i.e., Putnam Floating and Putnam Ultra go up and down completely randomly.
Pair Corralation between Putnam Floating and Putnam Ultra
Assuming the 90 days horizon Putnam Floating is expected to generate 1.98 times less return on investment than Putnam Ultra. In addition to that, Putnam Floating is 1.21 times more volatile than Putnam Ultra Short. It trades about 0.1 of its total potential returns per unit of risk. Putnam Ultra Short is currently generating about 0.23 per unit of volatility. If you would invest 1,006 in Putnam Ultra Short on November 18, 2024 and sell it today you would earn a total of 5.00 from holding Putnam Ultra Short or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Floating Rate vs. Putnam Ultra Short
Performance |
| Timeline |
| Putnam Floating Rate |
| Putnam Ultra Short |
Putnam Floating and Putnam Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Floating and Putnam Ultra
The main advantage of trading using opposite Putnam Floating and Putnam Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Floating position performs unexpectedly, Putnam Ultra 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 Ultra will offset losses from the drop in Putnam Ultra's long position.| Putnam Floating vs. Voya Solution Conservative | Putnam Floating vs. Global Diversified Income | Putnam Floating vs. Diversified International Fund | Putnam Floating vs. Delaware Limited Term Diversified |
| Putnam Ultra vs. Voya High Yield | Putnam Ultra vs. Neuberger Berman Income | Putnam Ultra vs. Multi Manager High Yield | Putnam Ultra vs. Calvert High Yield |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |