Correlation Between Ab Small and Putnam Floating
Can any of the company-specific risk be diversified away by investing in both Ab Small 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 Ab Small and Putnam Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Small Cap and Putnam Floating Rate, you can compare the effects of market volatilities on Ab Small 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 Ab Small with a short position of Putnam Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Small and Putnam Floating.
Diversification Opportunities for Ab Small and Putnam Floating
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SCYVX and Putnam is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ab Small Cap 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 Ab Small 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 Ab Small Cap 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 Ab Small i.e., Ab Small and Putnam Floating go up and down completely randomly.
Pair Corralation between Ab Small and Putnam Floating
If you would invest 1,505 in Ab Small Cap on September 4, 2024 and sell it today you would earn a total of 135.00 from holding Ab Small Cap or generate 8.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Small Cap vs. Putnam Floating Rate
Performance |
| Timeline |
| Ab Small Cap |
| Putnam Floating Rate |
Ab Small and Putnam Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Small and Putnam Floating
The main advantage of trading using opposite Ab Small and Putnam Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Small 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.| Ab Small vs. Ab Global E | Ab Small vs. Ab Global E | Ab Small vs. Ab Minnesota Portfolio | Ab Small vs. Ab Minnesota Portfolio |
| Putnam Floating vs. Pioneer High Yield | Putnam Floating vs. Nuveen High Income | Putnam Floating vs. Goldman Sachs High | Putnam Floating vs. Ab Global Risk |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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