Correlation Between Putnam Focused and BlackRock ETF
Can any of the company-specific risk be diversified away by investing in both Putnam Focused and BlackRock 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 Focused and BlackRock ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Focused Large and BlackRock ETF Trust, you can compare the effects of market volatilities on Putnam Focused and BlackRock 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 Focused with a short position of BlackRock ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Focused and BlackRock ETF.
Diversification Opportunities for Putnam Focused and BlackRock ETF
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Putnam and BlackRock is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Focused Large and BlackRock ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock ETF Trust and Putnam Focused 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 Focused Large are associated (or correlated) with BlackRock ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock ETF Trust has no effect on the direction of Putnam Focused i.e., Putnam Focused and BlackRock ETF go up and down completely randomly.
Pair Corralation between Putnam Focused and BlackRock ETF
Given the investment horizon of 90 days Putnam Focused Large is expected to generate 6.92 times more return on investment than BlackRock ETF. However, Putnam Focused is 6.92 times more volatile than BlackRock ETF Trust. It trades about 0.23 of its potential returns per unit of risk. BlackRock ETF Trust is currently generating about 0.06 per unit of risk. If you would invest 3,797 in Putnam Focused Large on August 26, 2024 and sell it today you would earn a total of 161.00 from holding Putnam Focused Large or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Focused Large vs. BlackRock ETF Trust
Performance |
| Timeline |
| Putnam Focused Large |
| BlackRock ETF Trust |
Putnam Focused and BlackRock ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Focused and BlackRock ETF
The main advantage of trading using opposite Putnam Focused and BlackRock ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Focused position performs unexpectedly, BlackRock 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 BlackRock ETF will offset losses from the drop in BlackRock ETF's long position.| Putnam Focused vs. BlackRock ETF Trust | Putnam Focused vs. Rbb Fund | Putnam Focused vs. Virtus ETF Trust | Putnam Focused vs. Amplify CWP Enhanced |
| BlackRock ETF vs. Capital Group Short | BlackRock ETF vs. Capital Group Municipal | BlackRock ETF vs. Capital Group Global | BlackRock ETF vs. Capital Group Dividend |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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