Correlation Between Putnam Panagora and California High
Can any of the company-specific risk be diversified away by investing in both Putnam Panagora and California 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 Panagora and California High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Panagora Risk and California High Yield Municipal, you can compare the effects of market volatilities on Putnam Panagora and California 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 Panagora with a short position of California High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Panagora and California High.
Diversification Opportunities for Putnam Panagora and California High
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Putnam and California is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Panagora Risk and California High Yield Municipa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on California High Yield and Putnam Panagora 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 Panagora Risk are associated (or correlated) with California High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of California High Yield has no effect on the direction of Putnam Panagora i.e., Putnam Panagora and California High go up and down completely randomly.
Pair Corralation between Putnam Panagora and California High
If you would invest 983.00 in California High Yield Municipal on September 12, 2024 and sell it today you would earn a total of 13.00 from holding California High Yield Municipal or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Putnam Panagora Risk vs. California High Yield Municipa
Performance |
| Timeline |
| Putnam Panagora Risk |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| California High Yield |
Putnam Panagora and California High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Panagora and California High
The main advantage of trading using opposite Putnam Panagora and California High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Panagora position performs unexpectedly, California 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 California High will offset losses from the drop in California High's long position.| Putnam Panagora vs. California High Yield Municipal | Putnam Panagora vs. T Rowe Price | Putnam Panagora vs. The National Tax Free | Putnam Panagora vs. Transamerica Intermediate Muni |
| California High vs. T Rowe Price | California High vs. Bbh Intermediate Municipal | California High vs. Ab Bond Inflation | California High vs. Blrc Sgy Mnp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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