Correlation Between BlackRock Core and Putnam Master
Can any of the company-specific risk be diversified away by investing in both BlackRock Core and Putnam Master 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 BlackRock Core and Putnam Master into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlackRock Core Bond and Putnam Master Intermediate, you can compare the effects of market volatilities on BlackRock Core and Putnam Master 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 BlackRock Core with a short position of Putnam Master. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock Core and Putnam Master.
Diversification Opportunities for BlackRock Core and Putnam Master
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between BlackRock and Putnam is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock Core Bond and Putnam Master Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Master Interm and BlackRock Core 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 BlackRock Core Bond are associated (or correlated) with Putnam Master. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Master Interm has no effect on the direction of BlackRock Core i.e., BlackRock Core and Putnam Master go up and down completely randomly.
Pair Corralation between BlackRock Core and Putnam Master
Considering the 90-day investment horizon BlackRock Core Bond is expected to under-perform the Putnam Master. In addition to that, BlackRock Core is 1.35 times more volatile than Putnam Master Intermediate. It trades about -0.02 of its total potential returns per unit of risk. Putnam Master Intermediate is currently generating about 0.06 per unit of volatility. If you would invest 324.00 in Putnam Master Intermediate on December 4, 2024 and sell it today you would earn a total of 7.00 from holding Putnam Master Intermediate or generate 2.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
BlackRock Core Bond vs. Putnam Master Intermediate
Performance |
Timeline |
BlackRock Core Bond |
Putnam Master Interm |
BlackRock Core and Putnam Master Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BlackRock Core and Putnam Master
The main advantage of trading using opposite BlackRock Core and Putnam Master positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock Core position performs unexpectedly, Putnam Master 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 Master will offset losses from the drop in Putnam Master's long position.BlackRock Core vs. DWS Municipal Income | BlackRock Core vs. Blackrock Muniholdings Closed | BlackRock Core vs. Abrdn Emerging Markets | BlackRock Core vs. Brookfield Business Corp |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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