Correlation Between Crossmark Steward and Putnam Floating
Can any of the company-specific risk be diversified away by investing in both Crossmark Steward 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 Crossmark Steward and Putnam Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crossmark Steward Equity and Putnam Floating Rate, you can compare the effects of market volatilities on Crossmark Steward 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 Crossmark Steward with a short position of Putnam Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crossmark Steward and Putnam Floating.
Diversification Opportunities for Crossmark Steward and Putnam Floating
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Crossmark and Putnam is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Crossmark Steward Equity 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 Crossmark Steward 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 Crossmark Steward Equity 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 Crossmark Steward i.e., Crossmark Steward and Putnam Floating go up and down completely randomly.
Pair Corralation between Crossmark Steward and Putnam Floating
Assuming the 90 days horizon Crossmark Steward Equity is expected to under-perform the Putnam Floating. In addition to that, Crossmark Steward is 4.87 times more volatile than Putnam Floating Rate. It trades about -0.18 of its total potential returns per unit of risk. Putnam Floating Rate is currently generating about 0.3 per unit of volatility. If you would invest 794.00 in Putnam Floating Rate on August 28, 2024 and sell it today you would earn a total of 6.00 from holding Putnam Floating Rate or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crossmark Steward Equity vs. Putnam Floating Rate
Performance |
| Timeline |
| Crossmark Steward Equity |
| Putnam Floating Rate |
Crossmark Steward and Putnam Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crossmark Steward and Putnam Floating
The main advantage of trading using opposite Crossmark Steward and Putnam Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crossmark Steward 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.| Crossmark Steward vs. Steward Small Mid Cap | Crossmark Steward vs. Steward Small Mid Cap | Crossmark Steward vs. Steward Ered Call | Crossmark Steward vs. Steward Ered Call |
| Putnam Floating vs. Putnam Equity Income | Putnam Floating vs. Putnam Tax Exempt | Putnam Floating vs. Putnam High Yield | Putnam Floating vs. Putnam Massachusetts Tax |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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