Correlation Between Putnam ETF and KraneShares
Can any of the company-specific risk be diversified away by investing in both Putnam ETF and KraneShares 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 KraneShares 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 KraneShares, you can compare the effects of market volatilities on Putnam ETF and KraneShares 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 KraneShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam ETF and KraneShares.
Diversification Opportunities for Putnam ETF and KraneShares
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Putnam and KraneShares is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Putnam ETF Trust and KraneShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares 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 KraneShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares has no effect on the direction of Putnam ETF i.e., Putnam ETF and KraneShares go up and down completely randomly.
Pair Corralation between Putnam ETF and KraneShares
If you would invest 3,219 in Putnam ETF Trust on November 1, 2024 and sell it today you would earn a total of 350.00 from holding Putnam ETF Trust or generate 10.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 1.67% |
| Values | Daily Returns |
Putnam ETF Trust vs. KraneShares
Performance |
| Timeline |
| Putnam ETF Trust |
| KraneShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Putnam ETF and KraneShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam ETF and KraneShares
The main advantage of trading using opposite Putnam ETF and KraneShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam ETF position performs unexpectedly, KraneShares 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 KraneShares will offset losses from the drop in KraneShares' long position.| Putnam ETF vs. Putnam Sustainable Future | Putnam ETF vs. Putnam Sustainable Leaders | Putnam ETF vs. Putnam Focused Large | Putnam ETF vs. Putnam Biorevolution ETF |
| KraneShares vs. iShares JP Morgan | KraneShares vs. First Trust Emerging | KraneShares vs. VanEck China Bond | KraneShares vs. WisdomTree Emerging Currency |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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