Correlation Between Putnam Short and Short-term Fund
Can any of the company-specific risk be diversified away by investing in both Putnam Short and Short-term Fund 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 Short and Short-term Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Short Duration and Short Term Fund Institutional, you can compare the effects of market volatilities on Putnam Short and Short-term Fund 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 Short with a short position of Short-term Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Short and Short-term Fund.
Diversification Opportunities for Putnam Short and Short-term Fund
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Putnam and Short-term is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Short Duration and Short Term Fund Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Term Fund and Putnam Short 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 Short Duration are associated (or correlated) with Short-term Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Term Fund has no effect on the direction of Putnam Short i.e., Putnam Short and Short-term Fund go up and down completely randomly.
Pair Corralation between Putnam Short and Short-term Fund
If you would invest 968.00 in Short Term Fund Institutional on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Short Term Fund Institutional or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Putnam Short Duration vs. Short Term Fund Institutional
Performance |
| Timeline |
| Putnam Short Duration |
| Short Term Fund |
Putnam Short and Short-term Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Short and Short-term Fund
The main advantage of trading using opposite Putnam Short and Short-term Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Short position performs unexpectedly, Short-term Fund 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 Short-term Fund will offset losses from the drop in Short-term Fund's long position.| Putnam Short vs. Needham Aggressive Growth | Putnam Short vs. Chartwell Short Duration | Putnam Short vs. Calamos High Income | Putnam Short vs. Massmutual Premier High |
| Short-term Fund vs. Jpmorgan Short Duration | Short-term Fund vs. Low Duration Fund | Short-term Fund vs. Massachusetts Investors Trust | Short-term Fund vs. Investment Grade Porate |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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