Correlation Between California Bond and Putnam Panagora
Can any of the company-specific risk be diversified away by investing in both California Bond and Putnam Panagora 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 Putnam Panagora 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 Putnam Panagora Risk, you can compare the effects of market volatilities on California Bond and Putnam Panagora 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 Putnam Panagora. Check out your portfolio center. Please also check ongoing floating volatility patterns of California Bond and Putnam Panagora.
Diversification Opportunities for California Bond and Putnam Panagora
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between California and Putnam is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding California Bond Fund and Putnam Panagora Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Panagora Risk 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 Putnam Panagora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Panagora Risk has no effect on the direction of California Bond i.e., California Bond and Putnam Panagora go up and down completely randomly.
Pair Corralation between California Bond and Putnam Panagora
If you would invest 1,038 in California Bond Fund on September 3, 2024 and sell it today you would earn a total of 13.00 from holding California Bond Fund or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
California Bond Fund vs. Putnam Panagora Risk
Performance |
| Timeline |
| California Bond |
| Putnam Panagora Risk |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
California Bond and Putnam Panagora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with California Bond and Putnam Panagora
The main advantage of trading using opposite California Bond and Putnam Panagora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if California Bond position performs unexpectedly, Putnam Panagora 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 Panagora will offset losses from the drop in Putnam Panagora's long position.| California Bond vs. Franklin California Tax Free | California Bond vs. Franklin California Tax Free | California Bond vs. Franklin California Tax Free | California Bond vs. Franklin California Tax Free |
| Putnam Panagora vs. California Bond Fund | Putnam Panagora vs. Multisector Bond Sma | Putnam Panagora vs. Versatile Bond Portfolio | Putnam Panagora vs. Transamerica Funds |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |