Correlation Between Putnam International and Putnam Floating
Can any of the company-specific risk be diversified away by investing in both Putnam International and Putnam Floating 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 International and Putnam Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam International Value and Putnam Floating Rate, you can compare the effects of market volatilities on Putnam International and Putnam Floating 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 International with a short position of Putnam Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam International and Putnam Floating.
Diversification Opportunities for Putnam International and Putnam Floating
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Putnam and Putnam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Putnam International Value and Putnam Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Floating Rate and Putnam International 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 International Value are associated (or correlated) with Putnam Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Floating Rate has no effect on the direction of Putnam International i.e., Putnam International and Putnam Floating go up and down completely randomly.
Pair Corralation between Putnam International and Putnam Floating
If you would invest 797.00 in Putnam Floating Rate on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Putnam Floating Rate or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam International Value vs. Putnam Floating Rate
Performance |
| Timeline |
| Putnam International |
| Putnam Floating Rate |
Putnam International and Putnam Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam International and Putnam Floating
The main advantage of trading using opposite Putnam International and Putnam Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam International position performs unexpectedly, Putnam Floating 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 Floating will offset losses from the drop in Putnam Floating's long position.| Putnam International vs. Dodge Cox Emerging | Putnam International vs. Doubleline Emerging Markets | Putnam International vs. Investec Emerging Markets | Putnam International vs. Pnc Emerging Markets |
| Putnam Floating vs. Nt International Small Mid | Putnam Floating vs. Small Pany Growth | Putnam Floating vs. Goldman Sachs Small | Putnam Floating vs. Artisan Small Cap |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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