Correlation Between Siit Emerging and Putnam Floating
Can any of the company-specific risk be diversified away by investing in both Siit Emerging 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 Siit Emerging and Putnam Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Emerging Markets and Putnam Floating Rate, you can compare the effects of market volatilities on Siit Emerging 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 Siit Emerging with a short position of Putnam Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Emerging and Putnam Floating.
Diversification Opportunities for Siit Emerging and Putnam Floating
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Siit and Putnam is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Siit Emerging Markets 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 Siit Emerging 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 Siit Emerging Markets 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 Siit Emerging i.e., Siit Emerging and Putnam Floating go up and down completely randomly.
Pair Corralation between Siit Emerging and Putnam Floating
Assuming the 90 days horizon Siit Emerging Markets is expected to under-perform the Putnam Floating. In addition to that, Siit Emerging is 5.75 times more volatile than Putnam Floating Rate. It trades about -0.15 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Emerging Markets vs. Putnam Floating Rate
Performance |
| Timeline |
| Siit Emerging Markets |
| Putnam Floating Rate |
Siit Emerging and Putnam Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Emerging and Putnam Floating
The main advantage of trading using opposite Siit Emerging and Putnam Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Emerging 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.| Siit Emerging vs. Dreyfus Natural Resources | Siit Emerging vs. Franklin Natural Resources | Siit Emerging vs. Alpsalerian Energy Infrastructure | Siit Emerging vs. Short Oil Gas |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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