Putnam Managed Municipal Stock Volatility
| PMM Stock | USD 6.19 0.02 0.32% |
Putnam Managed Municipal maintains Sharpe Ratio (i.e., Efficiency) of -0.0552, which implies the firm had a -0.0552% return per unit of risk over the last 3 months. Putnam Managed Municipal exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Putnam Managed's Risk Adjusted Performance of (0.04), variance of 0.4276, and Coefficient Of Variation of (2,051) to confirm the risk estimate we provide. Key indicators related to Putnam Managed's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Putnam Managed Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Putnam daily returns, and it is calculated using variance and standard deviation. We also use Putnam's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Putnam Managed volatility.
Putnam |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Putnam Managed can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Putnam Managed at lower prices. For example, an investor can purchase Putnam stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Putnam Managed's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving against Putnam Stock
| 0.61 | GS | Goldman Sachs Group Fiscal Year End 21st of January 2025 | PairCorr |
| 0.6 | MS | Morgan Stanley Fiscal Year End 21st of January 2025 | PairCorr |
| 0.57 | FRHC | Freedom Holding Corp | PairCorr |
| 0.52 | SF | Stifel Financial Earnings Call This Week | PairCorr |
| 0.48 | AMP | Ameriprise Financial Fiscal Year End 22nd of January 2025 | PairCorr |
| 0.44 | FDUS | Fidus Investment Corp | PairCorr |
| 0.44 | EVR | Evercore Partners | PairCorr |
| 0.39 | NMR | Nomura Holdings ADR | PairCorr |
| 0.39 | IPXXU | Inflection Point Acq | PairCorr |
Putnam Managed Market Sensitivity And Downside Risk
Putnam Managed's beta coefficient measures the volatility of Putnam stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Putnam stock's returns against your selected market. In other words, Putnam Managed's beta of 0.0253 provides an investor with an approximation of how much risk Putnam Managed stock can potentially add to one of your existing portfolios. Putnam Managed Municipal exhibits very low volatility with skewness of -0.27 and kurtosis of 0.24. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Putnam Managed's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Putnam Managed's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Putnam Managed Municipal Demand TrendCheck current 90 days Putnam Managed correlation with market (Dow Jones Industrial)Putnam Beta |
Putnam standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 0.61 |
It is essential to understand the difference between upside risk (as represented by Putnam Managed's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Putnam Managed's daily returns or price. Since the actual investment returns on holding a position in putnam stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Putnam Managed.
Putnam Managed Municipal Stock Volatility Analysis
Volatility refers to the frequency at which Putnam Managed stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Putnam Managed's price changes. Investors will then calculate the volatility of Putnam Managed's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Putnam Managed's volatility:
Historical Volatility
This type of stock volatility measures Putnam Managed's fluctuations based on previous trends. It's commonly used to predict Putnam Managed's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Putnam Managed's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Putnam Managed's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Putnam Managed Municipal Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Putnam Managed Projected Return Density Against Market
Considering the 90-day investment horizon Putnam Managed has a beta of 0.0253 indicating as returns on the market go up, Putnam Managed average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Putnam Managed Municipal will be expected to be much smaller as well.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Putnam Managed or Capital Markets sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Putnam Managed's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Putnam stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Putnam Managed Municipal has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a Putnam Managed Price Volatility?
Several factors can influence a stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Putnam Managed Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Putnam Managed is -1811.39. The daily returns are distributed with a variance of 0.37 and standard deviation of 0.61. The mean deviation of Putnam Managed Municipal is currently at 0.45. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.75
α | Alpha over Dow Jones | -0.04 | |
β | Beta against Dow Jones | 0.03 | |
σ | Overall volatility | 0.61 | |
Ir | Information ratio | -0.19 |
Putnam Managed Stock Return Volatility
Putnam Managed historical daily return volatility represents how much of Putnam Managed stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 0.6097% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7668% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Putnam Managed Volatility
Volatility is a rate at which the price of Putnam Managed or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Putnam Managed may increase or decrease. In other words, similar to Putnam's beta indicator, it measures the risk of Putnam Managed and helps estimate the fluctuations that may happen in a short period of time. So if prices of Putnam Managed fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 136 K | 121 K | |
| Market Cap | 278.4 M | 380.9 M |
Putnam Managed's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Putnam Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Putnam Managed's price varies over time.
3 ways to utilize Putnam Managed's volatility to invest better
Higher Putnam Managed's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Putnam Managed Municipal stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Putnam Managed Municipal stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Putnam Managed Municipal investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Putnam Managed's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Putnam Managed's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Putnam Managed Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.77 and is 1.26 times more volatile than Putnam Managed Municipal. Compared to the overall equity markets, volatility of historical daily returns of Putnam Managed Municipal is lower than 5 percent of all global equities and portfolios over the last 90 days. You can use Putnam Managed Municipal to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Putnam Managed to be traded at $6.5 in 90 days.Significant diversification
The correlation between Putnam Managed Municipal and DJI is 0.03 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Managed Municipal and DJI in the same portfolio, assuming nothing else is changed.
Putnam Managed Additional Risk Indicators
The analysis of Putnam Managed's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Putnam Managed's investment and either accepting that risk or mitigating it. Along with some common measures of Putnam Managed stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | (0.04) | |||
| Market Risk Adjusted Performance | (1.65) | |||
| Mean Deviation | 0.4807 | |||
| Coefficient Of Variation | (2,051) | |||
| Standard Deviation | 0.6539 | |||
| Variance | 0.4276 | |||
| Information Ratio | (0.19) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Putnam Managed Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Putnam Managed as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Putnam Managed's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Putnam Managed's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Putnam Managed Municipal.
When determining whether Putnam Managed Municipal is a strong investment it is important to analyze Putnam Managed's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Putnam Managed's future performance. For an informed investment choice regarding Putnam Stock, refer to the following important reports: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Putnam Managed Municipal. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Putnam Managed. If investors know Putnam will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Putnam Managed listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.251 | Dividend Share 0.286 | Earnings Share 0.58 | Revenue Per Share 0.422 | Quarterly Revenue Growth (0) |
The market value of Putnam Managed Municipal is measured differently than its book value, which is the value of Putnam that is recorded on the company's balance sheet. Investors also form their own opinion of Putnam Managed's value that differs from its market value or its book value, called intrinsic value, which is Putnam Managed's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Putnam Managed's market value can be influenced by many factors that don't directly affect Putnam Managed's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Putnam Managed's value and its price as these two are different measures arrived at by different means. Investors typically determine if Putnam Managed is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Putnam Managed's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.