Correlation Between Putnam Master and MFS High
Can any of the company-specific risk be diversified away by investing in both Putnam Master and MFS High 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 Master and MFS High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Master Intermediate and MFS High Income, you can compare the effects of market volatilities on Putnam Master and MFS High 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 Master with a short position of MFS High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Master and MFS High.
Diversification Opportunities for Putnam Master and MFS High
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Putnam and MFS is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Master Intermediate and MFS High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS High Income and Putnam Master 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 Master Intermediate are associated (or correlated) with MFS High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS High Income has no effect on the direction of Putnam Master i.e., Putnam Master and MFS High go up and down completely randomly.
Pair Corralation between Putnam Master and MFS High
Considering the 90-day investment horizon Putnam Master Intermediate is expected to under-perform the MFS High. But the etf apears to be less risky and, when comparing its historical volatility, Putnam Master Intermediate is 1.29 times less risky than MFS High. The etf trades about -0.08 of its potential returns per unit of risk. The MFS High Income is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 382.00 in MFS High Income on August 28, 2024 and sell it today you would lose (2.00) from holding MFS High Income or give up 0.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Master Intermediate vs. MFS High Income
Performance |
| Timeline |
| Putnam Master Interm |
| MFS High Income |
Putnam Master and MFS High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Master and MFS High
The main advantage of trading using opposite Putnam Master and MFS High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Master position performs unexpectedly, MFS High 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 MFS High will offset losses from the drop in MFS High's long position.| Putnam Master vs. MFS High Income | Putnam Master vs. MFS Investment Grade | Putnam Master vs. Eaton Vance National | Putnam Master vs. Invesco High Income |
| MFS High vs. MFS Investment Grade | MFS High vs. Eaton Vance National | MFS High vs. Invesco High Income | MFS High vs. Blackrock Muniholdings Ny |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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