Correlation Between Ubs Money and Putnam Money
Can any of the company-specific risk be diversified away by investing in both Ubs Money and Putnam Money 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 Ubs Money and Putnam Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubs Money Series and Putnam Money Market, you can compare the effects of market volatilities on Ubs Money and Putnam Money 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 Ubs Money with a short position of Putnam Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubs Money and Putnam Money.
Diversification Opportunities for Ubs Money and Putnam Money
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Ubs and Putnam is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Ubs Money Series and Putnam Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Money Market and Ubs Money 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 Ubs Money Series are associated (or correlated) with Putnam Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Money Market has no effect on the direction of Ubs Money i.e., Ubs Money and Putnam Money go up and down completely randomly.
Pair Corralation between Ubs Money and Putnam Money
Assuming the 90 days horizon Ubs Money Series is expected to generate 1.57 times more return on investment than Putnam Money. However, Ubs Money is 1.57 times more volatile than Putnam Money Market. It trades about 0.02 of its potential returns per unit of risk. Putnam Money Market is currently generating about 0.03 per unit of risk. If you would invest 91.00 in Ubs Money Series on August 27, 2024 and sell it today you would earn a total of 9.00 from holding Ubs Money Series or generate 9.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.2% |
| Values | Daily Returns |
Ubs Money Series vs. Putnam Money Market
Performance |
| Timeline |
| Ubs Money Series |
| Putnam Money Market |
Ubs Money and Putnam Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubs Money and Putnam Money
The main advantage of trading using opposite Ubs Money and Putnam Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubs Money position performs unexpectedly, Putnam Money 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 Money will offset losses from the drop in Putnam Money's long position.| Ubs Money vs. Vanguard Total Stock | Ubs Money vs. Vanguard 500 Index | Ubs Money vs. Vanguard Total Stock | Ubs Money vs. Vanguard Total Stock |
| Putnam Money vs. Ab Government Exchange | Putnam Money vs. Dws Government Money | Putnam Money vs. Us Government Securities | Putnam Money vs. Invesco Government Fund |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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