Correlation Between Franklin Mutual and Putnam Ohio
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Putnam Ohio 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 Franklin Mutual and Putnam Ohio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Mutual Global and Putnam Ohio Tax, you can compare the effects of market volatilities on Franklin Mutual and Putnam Ohio 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 Franklin Mutual with a short position of Putnam Ohio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Putnam Ohio.
Diversification Opportunities for Franklin Mutual and Putnam Ohio
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Putnam is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Global and Putnam Ohio Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Ohio Tax and Franklin Mutual 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 Franklin Mutual Global are associated (or correlated) with Putnam Ohio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Ohio Tax has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Putnam Ohio go up and down completely randomly.
Pair Corralation between Franklin Mutual and Putnam Ohio
Assuming the 90 days horizon Franklin Mutual Global is expected to generate 2.93 times more return on investment than Putnam Ohio. However, Franklin Mutual is 2.93 times more volatile than Putnam Ohio Tax. It trades about 0.03 of its potential returns per unit of risk. Putnam Ohio Tax is currently generating about 0.07 per unit of risk. If you would invest 2,965 in Franklin Mutual Global on September 12, 2024 and sell it today you would earn a total of 207.00 from holding Franklin Mutual Global or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Mutual Global vs. Putnam Ohio Tax
Performance |
| Timeline |
| Franklin Mutual Global |
| Putnam Ohio Tax |
Franklin Mutual and Putnam Ohio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Putnam Ohio
The main advantage of trading using opposite Franklin Mutual and Putnam Ohio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Putnam Ohio 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 Ohio will offset losses from the drop in Putnam Ohio's long position.| Franklin Mutual vs. Qs Large Cap | Franklin Mutual vs. American Mutual Fund | Franklin Mutual vs. Virtus Nfj Large Cap | Franklin Mutual vs. Avantis Large Cap |
| Putnam Ohio vs. Putnam Multi Cap Growth | Putnam Ohio vs. Putnam Multi Cap Growth | Putnam Ohio vs. Putnam Sustainable Future | Putnam Ohio vs. Putnam Equity Income |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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