Correlation Between Global X and Putnam ETF
Can any of the company-specific risk be diversified away by investing in both Global X 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 Global X and Putnam ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Funds and Putnam ETF Trust, you can compare the effects of market volatilities on Global X 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 Global X with a short position of Putnam ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Putnam ETF.
Diversification Opportunities for Global X and Putnam ETF
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Global and Putnam is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds 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 Global X 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 Global X Funds 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 Global X i.e., Global X and Putnam ETF go up and down completely randomly.
Pair Corralation between Global X and Putnam ETF
Given the investment horizon of 90 days Global X Funds is expected to generate 26.5 times more return on investment than Putnam ETF. However, Global X is 26.5 times more volatile than Putnam ETF Trust. It trades about 0.17 of its potential returns per unit of risk. Putnam ETF Trust is currently generating about 0.66 per unit of risk. If you would invest 2,463 in Global X Funds on August 26, 2024 and sell it today you would earn a total of 1,512 from holding Global X Funds or generate 61.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 77.16% |
| Values | Daily Returns |
Global X Funds vs. Putnam ETF Trust
Performance |
| Timeline |
| Global X Funds |
| Putnam ETF Trust |
Global X and Putnam ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Putnam ETF
The main advantage of trading using opposite Global X and Putnam ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X 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.| Global X vs. Invesco DWA Utilities | Global X vs. Invesco Dynamic Large | Global X vs. Invesco Dynamic Large | Global X vs. HUMANA INC |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stocks Directory Find actively traded stocks across global markets |