Correlation Between California Bond and Putman Absolute
Can any of the company-specific risk be diversified away by investing in both California Bond and Putman Absolute 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 California Bond and Putman Absolute into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between California Bond Fund and Putman Absolute Return, you can compare the effects of market volatilities on California Bond and Putman Absolute 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 California Bond with a short position of Putman Absolute. Check out your portfolio center. Please also check ongoing floating volatility patterns of California Bond and Putman Absolute.
Diversification Opportunities for California Bond and Putman Absolute
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between California and Putman is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding California Bond Fund and Putman Absolute Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putman Absolute Return and California Bond 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 California Bond Fund are associated (or correlated) with Putman Absolute. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putman Absolute Return has no effect on the direction of California Bond i.e., California Bond and Putman Absolute go up and down completely randomly.
Pair Corralation between California Bond and Putman Absolute
If you would invest 907.00 in Putman Absolute Return on October 23, 2024 and sell it today you would earn a total of 0.00 from holding Putman Absolute Return or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
California Bond Fund vs. Putman Absolute Return
Performance |
| Timeline |
| California Bond |
| Putman Absolute Return |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
California Bond and Putman Absolute Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with California Bond and Putman Absolute
The main advantage of trading using opposite California Bond and Putman Absolute positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if California Bond position performs unexpectedly, Putman Absolute 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 Putman Absolute will offset losses from the drop in Putman Absolute's long position.| California Bond vs. Maryland Tax Free Bond | California Bond vs. Artisan High Income | California Bond vs. Enhanced Fixed Income | California Bond vs. Bts Tactical Fixed |
| Putman Absolute vs. Delaware Limited Term Diversified | Putman Absolute vs. Alternative Asset Allocation | Putman Absolute vs. T Rowe Price | Putman Absolute vs. Nasdaq 100 Profund Nasdaq 100 |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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