Correlation Between Putnam Minnesota and Putnam Floating
Can any of the company-specific risk be diversified away by investing in both Putnam Minnesota and Putnam Floating 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 Minnesota and Putnam Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Minnesota Tax and Putnam Floating Rate, you can compare the effects of market volatilities on Putnam Minnesota and Putnam Floating 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 Minnesota with a short position of Putnam Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Minnesota and Putnam Floating.
Diversification Opportunities for Putnam Minnesota and Putnam Floating
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Putnam and Putnam is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Minnesota Tax and Putnam Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Floating Rate and Putnam Minnesota 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 Minnesota Tax are associated (or correlated) with Putnam Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Floating Rate has no effect on the direction of Putnam Minnesota i.e., Putnam Minnesota and Putnam Floating go up and down completely randomly.
Pair Corralation between Putnam Minnesota and Putnam Floating
Assuming the 90 days horizon Putnam Minnesota is expected to generate 2.56 times less return on investment than Putnam Floating. In addition to that, Putnam Minnesota is 1.31 times more volatile than Putnam Floating Rate. It trades about 0.06 of its total potential returns per unit of risk. Putnam Floating Rate is currently generating about 0.2 per unit of volatility. If you would invest 670.00 in Putnam Floating Rate on August 31, 2024 and sell it today you would earn a total of 131.00 from holding Putnam Floating Rate or generate 19.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Minnesota Tax vs. Putnam Floating Rate
Performance |
| Timeline |
| Putnam Minnesota Tax |
| Putnam Floating Rate |
Putnam Minnesota and Putnam Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Minnesota and Putnam Floating
The main advantage of trading using opposite Putnam Minnesota and Putnam Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Minnesota position performs unexpectedly, Putnam Floating 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 Floating will offset losses from the drop in Putnam Floating's long position.| Putnam Minnesota vs. Ultramid Cap Profund Ultramid Cap | Putnam Minnesota vs. Royce Opportunity Fund | Putnam Minnesota vs. Fidelity Small Cap | Putnam Minnesota vs. Mid Cap Value Profund |
| Putnam Floating vs. Pimco Funds | Putnam Floating vs. Dws Government Money | Putnam Floating vs. Cref Money Market | Putnam Floating vs. John Hancock Money |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |