Correlation Between SPDR Portfolio and Putnam Focused
Can any of the company-specific risk be diversified away by investing in both SPDR Portfolio and Putnam Focused 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 Portfolio and Putnam Focused into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Portfolio SP and Putnam Focused Large, you can compare the effects of market volatilities on SPDR Portfolio and Putnam Focused 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 Portfolio with a short position of Putnam Focused. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Portfolio and Putnam Focused.
Diversification Opportunities for SPDR Portfolio and Putnam Focused
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and Putnam is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Portfolio SP and Putnam Focused Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Focused Large and SPDR Portfolio 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 Portfolio SP are associated (or correlated) with Putnam Focused. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Focused Large has no effect on the direction of SPDR Portfolio i.e., SPDR Portfolio and Putnam Focused go up and down completely randomly.
Pair Corralation between SPDR Portfolio and Putnam Focused
Given the investment horizon of 90 days SPDR Portfolio SP is expected to generate 0.86 times more return on investment than Putnam Focused. However, SPDR Portfolio SP is 1.17 times less risky than Putnam Focused. It trades about 0.15 of its potential returns per unit of risk. Putnam Focused Large is currently generating about 0.11 per unit of risk. If you would invest 4,828 in SPDR Portfolio SP on August 26, 2024 and sell it today you would earn a total of 639.00 from holding SPDR Portfolio SP or generate 13.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Portfolio SP vs. Putnam Focused Large
Performance |
| Timeline |
| SPDR Portfolio SP |
| Putnam Focused Large |
SPDR Portfolio and Putnam Focused Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Portfolio and Putnam Focused
The main advantage of trading using opposite SPDR Portfolio and Putnam Focused positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Portfolio position performs unexpectedly, Putnam Focused 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 Focused will offset losses from the drop in Putnam Focused's long position.| SPDR Portfolio vs. SPDR Portfolio SP | SPDR Portfolio vs. SPDR Portfolio SP | SPDR Portfolio vs. SPDR Portfolio SP | SPDR Portfolio vs. SPDR SP 600 |
| Putnam Focused vs. BlackRock ETF Trust | Putnam Focused vs. Rbb Fund | Putnam Focused vs. Virtus ETF Trust | Putnam Focused vs. Amplify CWP Enhanced |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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