Correlation Between Putnam Floating and Putnam Massachusetts
Can any of the company-specific risk be diversified away by investing in both Putnam Floating and Putnam Massachusetts 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 Massachusetts 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 Massachusetts Tax, you can compare the effects of market volatilities on Putnam Floating and Putnam Massachusetts 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 Massachusetts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Floating and Putnam Massachusetts.
Diversification Opportunities for Putnam Floating and Putnam Massachusetts
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Putnam and Putnam is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Floating Rate and Putnam Massachusetts Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Massachusetts Tax 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 Massachusetts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Massachusetts Tax has no effect on the direction of Putnam Floating i.e., Putnam Floating and Putnam Massachusetts go up and down completely randomly.
Pair Corralation between Putnam Floating and Putnam Massachusetts
If you would invest 902.00 in Putnam Massachusetts Tax on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Putnam Massachusetts Tax or generate 0.55% 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. Putnam Massachusetts Tax
Performance |
| Timeline |
| Putnam Floating Rate |
| Putnam Massachusetts Tax |
Putnam Floating and Putnam Massachusetts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Floating and Putnam Massachusetts
The main advantage of trading using opposite Putnam Floating and Putnam Massachusetts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Floating position performs unexpectedly, Putnam Massachusetts 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 Massachusetts will offset losses from the drop in Putnam Massachusetts' long position.| Putnam Floating vs. Kinetics Market Opportunities | Putnam Floating vs. Barings Active Short | Putnam Floating vs. Versatile Bond Portfolio | Putnam Floating vs. Mirova Global Green |
| Putnam Massachusetts vs. Morgan Stanley Global | Putnam Massachusetts vs. Barings Global Floating | Putnam Massachusetts vs. Wasatch Global Opportunities | Putnam Massachusetts vs. Ab Global Risk |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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