Correlation Between Putnam Ultra and Putnam Short
Can any of the company-specific risk be diversified away by investing in both Putnam Ultra and Putnam Short 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 Ultra and Putnam Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Ultra Short and Putnam Short Duration, you can compare the effects of market volatilities on Putnam Ultra and Putnam Short 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 Ultra with a short position of Putnam Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Ultra and Putnam Short.
Diversification Opportunities for Putnam Ultra and Putnam Short
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Putnam and Putnam is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Ultra Short and Putnam Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Short Duration and Putnam Ultra 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 Ultra Short are associated (or correlated) with Putnam Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Short Duration has no effect on the direction of Putnam Ultra i.e., Putnam Ultra and Putnam Short go up and down completely randomly.
Pair Corralation between Putnam Ultra and Putnam Short
Assuming the 90 days horizon Putnam Ultra is expected to generate 1.05 times less return on investment than Putnam Short. But when comparing it to its historical volatility, Putnam Ultra Short is 1.02 times less risky than Putnam Short. It trades about 0.22 of its potential returns per unit of risk. Putnam Short Duration is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 907.00 in Putnam Short Duration on August 29, 2024 and sell it today you would earn a total of 106.00 from holding Putnam Short Duration or generate 11.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Ultra Short vs. Putnam Short Duration
Performance |
| Timeline |
| Putnam Ultra Short |
| Putnam Short Duration |
Putnam Ultra and Putnam Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Ultra and Putnam Short
The main advantage of trading using opposite Putnam Ultra and Putnam Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Ultra position performs unexpectedly, Putnam Short 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 Putnam Short will offset losses from the drop in Putnam Short's long position.| Putnam Ultra vs. Alphacentric Lifesci Healthcare | Putnam Ultra vs. Allianzgi Health Sciences | Putnam Ultra vs. The Gabelli Healthcare | Putnam Ultra vs. Blackrock Health Sciences |
| Putnam Short vs. Short Term Fund R | Putnam Short vs. Putnam Ultra Short | Putnam Short vs. HUMANA INC | Putnam Short vs. Aquagold International |
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.
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