Correlation Between Putnam Master and MFS Multimarket
Can any of the company-specific risk be diversified away by investing in both Putnam Master and MFS Multimarket 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 Multimarket 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 Multimarket Income, you can compare the effects of market volatilities on Putnam Master and MFS Multimarket 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 Multimarket. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Master and MFS Multimarket.
Diversification Opportunities for Putnam Master and MFS Multimarket
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Putnam and MFS is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Master Intermediate and MFS Multimarket Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Multimarket 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 Multimarket. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Multimarket Income has no effect on the direction of Putnam Master i.e., Putnam Master and MFS Multimarket go up and down completely randomly.
Pair Corralation between Putnam Master and MFS Multimarket
Considering the 90-day investment horizon Putnam Master is expected to generate 1.22 times less return on investment than MFS Multimarket. In addition to that, Putnam Master is 1.16 times more volatile than MFS Multimarket Income. It trades about 0.06 of its total potential returns per unit of risk. MFS Multimarket Income is currently generating about 0.09 per unit of volatility. If you would invest 395.00 in MFS Multimarket Income on August 31, 2024 and sell it today you would earn a total of 76.00 from holding MFS Multimarket Income or generate 19.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Master Intermediate vs. MFS Multimarket Income
Performance |
| Timeline |
| Putnam Master Interm |
| MFS Multimarket Income |
Putnam Master and MFS Multimarket Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Master and MFS Multimarket
The main advantage of trading using opposite Putnam Master and MFS Multimarket positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Master position performs unexpectedly, MFS Multimarket 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 Multimarket will offset losses from the drop in MFS Multimarket's long position.| Putnam Master vs. Blackrock Floating Rate | Putnam Master vs. Eaton Vance Senior | Putnam Master vs. Eaton Vance Senior | Putnam Master vs. Blackrock Debt Strategies |
| MFS Multimarket vs. MFS High Yield | MFS Multimarket vs. MFS High Income | MFS Multimarket vs. MFS Intermediate Income | MFS Multimarket vs. Blackrock Muniholdings Quality |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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