Correlation Between Prudential Jennison and Putnam Money
Can any of the company-specific risk be diversified away by investing in both Prudential Jennison and Putnam Money 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 Prudential Jennison and Putnam Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prudential Jennison Global and Putnam Money Market, you can compare the effects of market volatilities on Prudential Jennison and Putnam Money 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 Prudential Jennison with a short position of Putnam Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Jennison and Putnam Money.
Diversification Opportunities for Prudential Jennison and Putnam Money
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Prudential and Putnam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Jennison Global and Putnam Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Money Market and Prudential Jennison 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 Prudential Jennison Global are associated (or correlated) with Putnam Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Money Market has no effect on the direction of Prudential Jennison i.e., Prudential Jennison and Putnam Money go up and down completely randomly.
Pair Corralation between Prudential Jennison and Putnam Money
If you would invest 1,703 in Prudential Jennison Global on September 14, 2024 and sell it today you would earn a total of 5.00 from holding Prudential Jennison Global or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Prudential Jennison Global vs. Putnam Money Market
Performance |
| Timeline |
| Prudential Jennison |
| Putnam Money Market |
Prudential Jennison and Putnam Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential Jennison and Putnam Money
The main advantage of trading using opposite Prudential Jennison and Putnam Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential Jennison position performs unexpectedly, Putnam Money 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 Money will offset losses from the drop in Putnam Money's long position.| Prudential Jennison vs. Putnam Money Market | Prudential Jennison vs. Money Market Obligations | Prudential Jennison vs. Hewitt Money Market | Prudential Jennison vs. Dws Government Money |
| Putnam Money vs. Vanguard Total Stock | Putnam Money vs. Vanguard 500 Index | Putnam Money vs. Vanguard Total Stock | Putnam Money vs. Vanguard Total Stock |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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