Correlation Between Tiaa Cref and Putnam Money
Can any of the company-specific risk be diversified away by investing in both Tiaa Cref 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 Tiaa Cref and Putnam Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tiaa Cref Inflation Link and Putnam Money Market, you can compare the effects of market volatilities on Tiaa Cref 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 Tiaa Cref with a short position of Putnam Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa Cref and Putnam Money.
Diversification Opportunities for Tiaa Cref and Putnam Money
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tiaa and Putnam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Inflation Link 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 Tiaa Cref 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 Tiaa Cref Inflation Link 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 Tiaa Cref i.e., Tiaa Cref and Putnam Money go up and down completely randomly.
Pair Corralation between Tiaa Cref and Putnam Money
Assuming the 90 days horizon Tiaa Cref is expected to generate 1.18 times less return on investment than Putnam Money. But when comparing it to its historical volatility, Tiaa Cref Inflation Link is 2.56 times less risky than Putnam Money. It trades about 0.06 of its potential returns per unit of risk. Putnam Money Market is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 92.00 in Putnam Money Market on November 7, 2024 and sell it today you would earn a total of 8.00 from holding Putnam Money Market or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Tiaa Cref Inflation Link vs. Putnam Money Market
Performance |
| Timeline |
| Tiaa Cref Inflation |
| Putnam Money Market |
Tiaa Cref and Putnam Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa Cref and Putnam Money
The main advantage of trading using opposite Tiaa Cref and Putnam Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa Cref 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.| Tiaa Cref vs. Goldman Sachs High | Tiaa Cref vs. Metropolitan West High | Tiaa Cref vs. T Rowe Price | Tiaa Cref vs. Nuveen California High |
| Putnam Money vs. Hennessy Nerstone Mid | Putnam Money vs. Heartland Value Plus | Putnam Money vs. Ultrasmall Cap Profund Ultrasmall Cap | Putnam Money vs. Small Cap Value |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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