Correlation Between Putnam Money and Growth Fund
Can any of the company-specific risk be diversified away by investing in both Putnam Money and Growth Fund 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 Putnam Money and Growth Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Money Market and Growth Fund R6, you can compare the effects of market volatilities on Putnam Money and Growth Fund 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 Putnam Money with a short position of Growth Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Money and Growth Fund.
Diversification Opportunities for Putnam Money and Growth Fund
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Putnam and Growth is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Money Market and Growth Fund R6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Fund R6 and Putnam Money 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 Putnam Money Market are associated (or correlated) with Growth Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Fund R6 has no effect on the direction of Putnam Money i.e., Putnam Money and Growth Fund go up and down completely randomly.
Pair Corralation between Putnam Money and Growth Fund
If you would invest 6,053 in Growth Fund R6 on September 25, 2024 and sell it today you would earn a total of 143.00 from holding Growth Fund R6 or generate 2.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Putnam Money Market vs. Growth Fund R6
Performance |
Timeline |
Putnam Money Market |
Growth Fund R6 |
Putnam Money and Growth Fund Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Putnam Money and Growth Fund
The main advantage of trading using opposite Putnam Money and Growth Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Money position performs unexpectedly, Growth Fund 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 Growth Fund will offset losses from the drop in Growth Fund's long position.Putnam Money vs. Cref Money Market | Putnam Money vs. Ab Government Exchange | Putnam Money vs. Money Market Obligations | Putnam Money vs. General Money Market |
Growth Fund vs. General Money Market | Growth Fund vs. Cref Money Market | Growth Fund vs. John Hancock Money | Growth Fund vs. Putnam Money Market |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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