Correlation Between Ms Global and Putnam Floating
Can any of the company-specific risk be diversified away by investing in both Ms Global and Putnam Floating 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 Ms Global and Putnam Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ms Global Fixed and Putnam Floating Rate, you can compare the effects of market volatilities on Ms Global and Putnam Floating 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 Ms Global with a short position of Putnam Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ms Global and Putnam Floating.
Diversification Opportunities for Ms Global and Putnam Floating
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MFIRX and Putnam is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ms Global Fixed and Putnam Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Floating Rate and Ms Global 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 Ms Global Fixed are associated (or correlated) with Putnam Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Floating Rate has no effect on the direction of Ms Global i.e., Ms Global and Putnam Floating go up and down completely randomly.
Pair Corralation between Ms Global and Putnam Floating
Assuming the 90 days horizon Ms Global Fixed is expected to generate 1.17 times more return on investment than Putnam Floating. However, Ms Global is 1.17 times more volatile than Putnam Floating Rate. It trades about 0.2 of its potential returns per unit of risk. Putnam Floating Rate is currently generating about 0.02 per unit of risk. If you would invest 518.00 in Ms Global Fixed on December 28, 2024 and sell it today you would earn a total of 10.00 from holding Ms Global Fixed or generate 1.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ms Global Fixed vs. Putnam Floating Rate
Performance |
Timeline |
Ms Global Fixed |
Putnam Floating Rate |
Ms Global and Putnam Floating Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ms Global and Putnam Floating
The main advantage of trading using opposite Ms Global and Putnam Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ms Global position performs unexpectedly, Putnam Floating 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 Floating will offset losses from the drop in Putnam Floating's long position.Ms Global vs. Barings Global Floating | Ms Global vs. Touchstone Large Cap | Ms Global vs. Pnc Balanced Allocation | Ms Global vs. T Rowe Price |
Putnam Floating vs. Aqr Small Cap | Putnam Floating vs. Touchstone Small Cap | Putnam Floating vs. Cardinal Small Cap | Putnam Floating vs. Transamerica International Small |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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