Correlation Between IShares Core and Putnam ETF
Can any of the company-specific risk be diversified away by investing in both IShares Core 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 IShares Core and Putnam ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Core Aggregate and Putnam ETF Trust, you can compare the effects of market volatilities on IShares Core 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 IShares Core with a short position of Putnam ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and Putnam ETF.
Diversification Opportunities for IShares Core and Putnam ETF
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between IShares and Putnam is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core Aggregate 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 IShares 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 iShares Core Aggregate 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 IShares Core i.e., IShares Core and Putnam ETF go up and down completely randomly.
Pair Corralation between IShares Core and Putnam ETF
Considering the 90-day investment horizon IShares Core is expected to generate 1.03 times less return on investment than Putnam ETF. In addition to that, IShares Core is 1.0 times more volatile than Putnam ETF Trust. It trades about 0.05 of its total potential returns per unit of risk. Putnam ETF Trust is currently generating about 0.05 per unit of volatility. If you would invest 4,541 in Putnam ETF Trust on August 26, 2024 and sell it today you would earn a total of 295.00 from holding Putnam ETF Trust or generate 6.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Core Aggregate vs. Putnam ETF Trust
Performance |
| Timeline |
| iShares Core Aggregate |
| Putnam ETF Trust |
IShares Core and Putnam ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and Putnam ETF
The main advantage of trading using opposite IShares Core and Putnam ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core 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.| IShares Core vs. iShares MSCI EAFE | IShares Core vs. iShares iBoxx Investment | IShares Core vs. iShares TIPS Bond | IShares Core vs. iShares 1 3 Year |
| Putnam ETF vs. iShares MSCI EAFE | Putnam ETF vs. iShares iBoxx Investment | Putnam ETF vs. iShares TIPS Bond | Putnam ETF vs. iShares 1 3 Year |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |