Correlation Between Putnam Convertible and Tiaa-cref Inflation-linked
Can any of the company-specific risk be diversified away by investing in both Putnam Convertible and Tiaa-cref Inflation-linked 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 Convertible and Tiaa-cref Inflation-linked into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Convertible Securities and Tiaa Cref Inflation Linked Bond, you can compare the effects of market volatilities on Putnam Convertible and Tiaa-cref Inflation-linked 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 Convertible with a short position of Tiaa-cref Inflation-linked. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Convertible and Tiaa-cref Inflation-linked.
Diversification Opportunities for Putnam Convertible and Tiaa-cref Inflation-linked
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Putnam and Tiaa-cref is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Convertible Securities and Tiaa Cref Inflation Linked Bon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa-cref Inflation-linked and Putnam Convertible 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 Convertible Securities are associated (or correlated) with Tiaa-cref Inflation-linked. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa-cref Inflation-linked has no effect on the direction of Putnam Convertible i.e., Putnam Convertible and Tiaa-cref Inflation-linked go up and down completely randomly.
Pair Corralation between Putnam Convertible and Tiaa-cref Inflation-linked
Assuming the 90 days horizon Putnam Convertible Securities is expected to generate 2.47 times more return on investment than Tiaa-cref Inflation-linked. However, Putnam Convertible is 2.47 times more volatile than Tiaa Cref Inflation Linked Bond. It trades about 0.22 of its potential returns per unit of risk. Tiaa Cref Inflation Linked Bond is currently generating about 0.24 per unit of risk. If you would invest 2,576 in Putnam Convertible Securities on May 28, 2025 and sell it today you would earn a total of 170.00 from holding Putnam Convertible Securities or generate 6.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Convertible Securities vs. Tiaa Cref Inflation Linked Bon
Performance |
| Timeline |
| Putnam Convertible |
| Tiaa-cref Inflation-linked |
Putnam Convertible and Tiaa-cref Inflation-linked Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Convertible and Tiaa-cref Inflation-linked
The main advantage of trading using opposite Putnam Convertible and Tiaa-cref Inflation-linked positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Convertible position performs unexpectedly, Tiaa-cref Inflation-linked 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 Tiaa-cref Inflation-linked will offset losses from the drop in Tiaa-cref Inflation-linked's long position.| Putnam Convertible vs. Putnam Equity Income | Putnam Convertible vs. Putnam Tax Exempt | Putnam Convertible vs. Putnam Floating Rate | Putnam Convertible vs. Putnam High Yield |
| Tiaa-cref Inflation-linked vs. Multisector Bond Sma | Tiaa-cref Inflation-linked vs. Versatile Bond Portfolio | Tiaa-cref Inflation-linked vs. T Rowe Price | Tiaa-cref Inflation-linked vs. Ab Bond Inflation |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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