Correlation Between Putnam Master and Blackrock Floating
Can any of the company-specific risk be diversified away by investing in both Putnam Master and Blackrock 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 Master and Blackrock Floating 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 Blackrock Floating Rate, you can compare the effects of market volatilities on Putnam Master and Blackrock 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 Master with a short position of Blackrock Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Master and Blackrock Floating.
Diversification Opportunities for Putnam Master and Blackrock Floating
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Putnam and Blackrock is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Master Intermediate and Blackrock Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Floating Rate 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 Blackrock Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Floating Rate has no effect on the direction of Putnam Master i.e., Putnam Master and Blackrock Floating go up and down completely randomly.
Pair Corralation between Putnam Master and Blackrock Floating
Considering the 90-day investment horizon Putnam Master is expected to generate 2.23 times less return on investment than Blackrock Floating. In addition to that, Putnam Master is 1.32 times more volatile than Blackrock Floating Rate. It trades about 0.04 of its total potential returns per unit of risk. Blackrock Floating Rate is currently generating about 0.12 per unit of volatility. If you would invest 924.00 in Blackrock Floating Rate on September 2, 2024 and sell it today you would earn a total of 474.00 from holding Blackrock Floating Rate or generate 51.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Master Intermediate vs. Blackrock Floating Rate
Performance |
| Timeline |
| Putnam Master Interm |
| Blackrock Floating Rate |
Putnam Master and Blackrock Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Master and Blackrock Floating
The main advantage of trading using opposite Putnam Master and Blackrock Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Master position performs unexpectedly, Blackrock 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 Blackrock Floating will offset losses from the drop in Blackrock Floating'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 |
| Blackrock Floating vs. BlackRock Floating Rate | Blackrock Floating vs. Eaton Vance Floating | Blackrock Floating vs. Eaton Vance Senior | Blackrock Floating vs. Nuveen Floating Rate |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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