Correlation Between SPDR Bloomberg and Putnam ETF
Can any of the company-specific risk be diversified away by investing in both SPDR Bloomberg 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 SPDR Bloomberg and Putnam ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Bloomberg 1 3 and Putnam ETF Trust, you can compare the effects of market volatilities on SPDR Bloomberg 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 SPDR Bloomberg with a short position of Putnam ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Bloomberg and Putnam ETF.
Diversification Opportunities for SPDR Bloomberg and Putnam ETF
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between SPDR and Putnam is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Bloomberg 1 3 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 SPDR Bloomberg 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 SPDR Bloomberg 1 3 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 SPDR Bloomberg i.e., SPDR Bloomberg and Putnam ETF go up and down completely randomly.
Pair Corralation between SPDR Bloomberg and Putnam ETF
Considering the 90-day investment horizon SPDR Bloomberg 1 3 is expected to generate 0.62 times more return on investment than Putnam ETF. However, SPDR Bloomberg 1 3 is 1.61 times less risky than Putnam ETF. It trades about 1.08 of its potential returns per unit of risk. Putnam ETF Trust is currently generating about 0.61 per unit of risk. If you would invest 9,139 in SPDR Bloomberg 1 3 on August 29, 2024 and sell it today you would earn a total of 34.00 from holding SPDR Bloomberg 1 3 or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
SPDR Bloomberg 1 3 vs. Putnam ETF Trust
Performance |
| Timeline |
| SPDR Bloomberg 1 |
| Putnam ETF Trust |
SPDR Bloomberg and Putnam ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Bloomberg and Putnam ETF
The main advantage of trading using opposite SPDR Bloomberg and Putnam ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Bloomberg 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.| SPDR Bloomberg vs. SPDR Nuveen Municipal | SPDR Bloomberg vs. SPDR SP 400 | SPDR Bloomberg vs. SPDR SP 400 | SPDR Bloomberg vs. SPDR SP 1500 |
| Putnam ETF vs. Alpha Architect 1 3 | Putnam ETF vs. PIMCO Enhanced Short | Putnam ETF vs. AB Ultra Short | Putnam ETF vs. IQ MacKay ESG |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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