Correlation Between Putnam Convertible and Federated High
Can any of the company-specific risk be diversified away by investing in both Putnam Convertible and Federated 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 Convertible and Federated High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Convertible Incm Gwth and Federated High Income, you can compare the effects of market volatilities on Putnam Convertible and Federated 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 Convertible with a short position of Federated High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Convertible and Federated High.
Diversification Opportunities for Putnam Convertible and Federated High
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Putnam and Federated is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Convertible Incm Gwth and Federated High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated High Income and Putnam Convertible 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 Convertible Incm Gwth are associated (or correlated) with Federated High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated High Income has no effect on the direction of Putnam Convertible i.e., Putnam Convertible and Federated High go up and down completely randomly.
Pair Corralation between Putnam Convertible and Federated High
If you would invest 2,161 in Putnam Convertible Incm Gwth on September 4, 2024 and sell it today you would earn a total of 456.00 from holding Putnam Convertible Incm Gwth or generate 21.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Putnam Convertible Incm Gwth vs. Federated High Income
Performance |
| Timeline |
| Putnam Convertible Incm |
| Federated High Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Putnam Convertible and Federated High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Convertible and Federated High
The main advantage of trading using opposite Putnam Convertible and Federated High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Convertible position performs unexpectedly, Federated 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 Federated High will offset losses from the drop in Federated High's long position.| Putnam Convertible vs. Aig Government Money | Putnam Convertible vs. Fidelity Series Government | Putnam Convertible vs. Us Government Securities | Putnam Convertible vs. Lord Abbett Government |
| Federated High vs. Lord Abbett Convertible | Federated High vs. Rationalpier 88 Convertible | Federated High vs. Putnam Convertible Incm Gwth | Federated High vs. Virtus Convertible |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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