Correlation Between Putnam ETF and Putnam ETF

Can any of the company-specific risk be diversified away by investing in both Putnam ETF and Putnam ETF 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 ETF and Putnam ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Putnam ETF Trust and Putnam ETF Trust, you can compare the effects of market volatilities on Putnam ETF and Putnam ETF 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 ETF with a short position of Putnam ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam ETF and Putnam ETF.

Diversification Opportunities for Putnam ETF and Putnam ETF

0.0

Correlation Coefficient

Putnam ETF  Putnam ETF

Pay attention - limited upside

The 3 months correlation between Putnam and Putnam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Putnam ETF Trust and Putnam ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam ETF Trust and Putnam ETF 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 ETF Trust are associated (or correlated) with Putnam ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam ETF Trust has no effect on the direction of Putnam ETF i.e., Putnam ETF and Putnam ETF go up and down completely randomly.

Pair Corralation between Putnam ETF and Putnam ETF

If you would invest  5,099  in Putnam ETF Trust on September 2, 2024 and sell it today you would earn a total of  70.00  from holding Putnam ETF Trust or generate 1.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Putnam ETF Trust  vs.  Putnam ETF Trust

Putnam ETF Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Putnam ETF Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Putnam ETF is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Putnam ETF Trust

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Putnam ETF Trust are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Putnam ETF is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Putnam ETF and Putnam ETF

The main advantage of trading using opposite Putnam ETF and Putnam ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam ETF position performs unexpectedly, Putnam ETF 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 ETF will offset losses from the drop in Putnam ETF's long position.

The idea behind Putnam ETF Trust and Putnam ETF Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.