Correlation Between Putnam Managed and Nuveen California
Can any of the company-specific risk be diversified away by investing in both Putnam Managed and Nuveen California 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 Managed and Nuveen California into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Managed Municipal and Nuveen California Select, you can compare the effects of market volatilities on Putnam Managed and Nuveen California 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 Managed with a short position of Nuveen California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Managed and Nuveen California.
Diversification Opportunities for Putnam Managed and Nuveen California
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Putnam and Nuveen is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Managed Municipal and Nuveen California Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen California Select and Putnam Managed 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 Managed Municipal are associated (or correlated) with Nuveen California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen California Select has no effect on the direction of Putnam Managed i.e., Putnam Managed and Nuveen California go up and down completely randomly.
Pair Corralation between Putnam Managed and Nuveen California
Considering the 90-day investment horizon Putnam Managed Municipal is expected to generate 0.96 times more return on investment than Nuveen California. However, Putnam Managed Municipal is 1.05 times less risky than Nuveen California. It trades about 0.1 of its potential returns per unit of risk. Nuveen California Select is currently generating about 0.02 per unit of risk. If you would invest 626.00 in Putnam Managed Municipal on September 1, 2024 and sell it today you would earn a total of 10.00 from holding Putnam Managed Municipal or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Managed Municipal vs. Nuveen California Select
Performance |
| Timeline |
| Putnam Managed Municipal |
| Nuveen California Select |
Putnam Managed and Nuveen California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Managed and Nuveen California
The main advantage of trading using opposite Putnam Managed and Nuveen California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Managed position performs unexpectedly, Nuveen California 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 Nuveen California will offset losses from the drop in Nuveen California's long position.| Putnam Managed vs. MFS Investment Grade | Putnam Managed vs. Eaton Vance National | Putnam Managed vs. Blackrock Munivest | Putnam Managed vs. DTF Tax Free |
| Nuveen California vs. Eaton Vance National | Nuveen California vs. Invesco High Income | Nuveen California vs. Blackrock Muniholdings Ny | Nuveen California vs. MFS Investment Grade |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |