Correlation Between Putnman Retirement and Floating Rate
Can any of the company-specific risk be diversified away by investing in both Putnman Retirement and Floating Rate 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 Putnman Retirement and Floating Rate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnman Retirement Ready and Floating Rate Fund, you can compare the effects of market volatilities on Putnman Retirement and Floating Rate 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 Putnman Retirement with a short position of Floating Rate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnman Retirement and Floating Rate.
Diversification Opportunities for Putnman Retirement and Floating Rate
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Putnman and Floating is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Putnman Retirement Ready and Floating Rate Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Floating Rate and Putnman Retirement 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 Putnman Retirement Ready are associated (or correlated) with Floating Rate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Floating Rate has no effect on the direction of Putnman Retirement i.e., Putnman Retirement and Floating Rate go up and down completely randomly.
Pair Corralation between Putnman Retirement and Floating Rate
Assuming the 90 days horizon Putnman Retirement is expected to generate 1.12 times less return on investment than Floating Rate. In addition to that, Putnman Retirement is 2.27 times more volatile than Floating Rate Fund. It trades about 0.09 of its total potential returns per unit of risk. Floating Rate Fund is currently generating about 0.24 per unit of volatility. If you would invest 734.00 in Floating Rate Fund on November 8, 2024 and sell it today you would earn a total of 81.00 from holding Floating Rate Fund or generate 11.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnman Retirement Ready vs. Floating Rate Fund
Performance |
| Timeline |
| Putnman Retirement Ready |
| Floating Rate |
Putnman Retirement and Floating Rate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnman Retirement and Floating Rate
The main advantage of trading using opposite Putnman Retirement and Floating Rate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnman Retirement position performs unexpectedly, Floating Rate 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 Floating Rate will offset losses from the drop in Floating Rate's long position.| Putnman Retirement vs. Rational Defensive Growth | Putnman Retirement vs. Barings Active Short | Putnman Retirement vs. Federated Emerging Market | Putnman Retirement vs. Vanguard Growth And |
| Floating Rate vs. Gmo Emerging Ntry | Floating Rate vs. Massmutual Premier High | Floating Rate vs. The E Fixed | Floating Rate vs. Multisector Bond Sma |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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