Correlation Between Flaherty Crumrine and Putnam Master
Can any of the company-specific risk be diversified away by investing in both Flaherty Crumrine and Putnam Master 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 Flaherty Crumrine and Putnam Master into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flaherty Crumrine Preferred and Putnam Master Intermediate, you can compare the effects of market volatilities on Flaherty Crumrine and Putnam Master 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 Flaherty Crumrine with a short position of Putnam Master. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flaherty Crumrine and Putnam Master.
Diversification Opportunities for Flaherty Crumrine and Putnam Master
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Flaherty and Putnam is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Flaherty Crumrine Preferred and Putnam Master Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Master Interm and Flaherty Crumrine 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 Flaherty Crumrine Preferred are associated (or correlated) with Putnam Master. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Master Interm has no effect on the direction of Flaherty Crumrine i.e., Flaherty Crumrine and Putnam Master go up and down completely randomly.
Pair Corralation between Flaherty Crumrine and Putnam Master
Considering the 90-day investment horizon Flaherty Crumrine is expected to generate 1.09 times less return on investment than Putnam Master. But when comparing it to its historical volatility, Flaherty Crumrine Preferred is 1.01 times less risky than Putnam Master. It trades about 0.03 of its potential returns per unit of risk. Putnam Master Intermediate is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 281.00 in Putnam Master Intermediate on August 31, 2024 and sell it today you would earn a total of 46.00 from holding Putnam Master Intermediate or generate 16.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Flaherty Crumrine Preferred vs. Putnam Master Intermediate
Performance |
| Timeline |
| Flaherty Crumrine |
| Putnam Master Interm |
Flaherty Crumrine and Putnam Master Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flaherty Crumrine and Putnam Master
The main advantage of trading using opposite Flaherty Crumrine and Putnam Master positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flaherty Crumrine position performs unexpectedly, Putnam Master 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 Master will offset losses from the drop in Putnam Master's long position.| Flaherty Crumrine vs. Flaherty Crumrine Preferredome | Flaherty Crumrine vs. Flaherty Crumrine Preferred | Flaherty Crumrine vs. Flaherty and Crumrine | Flaherty Crumrine vs. John Hancock Preferred |
| Putnam Master vs. Blackrock Floating Rate | Putnam Master vs. Eaton Vance Senior | Putnam Master vs. Eaton Vance Senior | Putnam Master vs. Blackrock Debt Strategies |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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