Correlation Between Bondbloxx ETF and Putman Absolute
Can any of the company-specific risk be diversified away by investing in both Bondbloxx ETF and Putman Absolute 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 Bondbloxx ETF and Putman Absolute into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bondbloxx ETF Trust and Putman Absolute Return, you can compare the effects of market volatilities on Bondbloxx ETF and Putman Absolute 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 Bondbloxx ETF with a short position of Putman Absolute. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bondbloxx ETF and Putman Absolute.
Diversification Opportunities for Bondbloxx ETF and Putman Absolute
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bondbloxx and Putman is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Bondbloxx ETF Trust and Putman Absolute Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putman Absolute Return and Bondbloxx 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 Bondbloxx ETF Trust are associated (or correlated) with Putman Absolute. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putman Absolute Return has no effect on the direction of Bondbloxx ETF i.e., Bondbloxx ETF and Putman Absolute go up and down completely randomly.
Pair Corralation between Bondbloxx ETF and Putman Absolute
Given the investment horizon of 90 days Bondbloxx ETF is expected to generate 1.9 times less return on investment than Putman Absolute. But when comparing it to its historical volatility, Bondbloxx ETF Trust is 3.28 times less risky than Putman Absolute. It trades about 0.39 of its potential returns per unit of risk. Putman Absolute Return is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 820.00 in Putman Absolute Return on September 13, 2024 and sell it today you would earn a total of 10.00 from holding Putman Absolute Return or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bondbloxx ETF Trust vs. Putman Absolute Return
Performance |
| Timeline |
| Bondbloxx ETF Trust |
| Putman Absolute Return |
Bondbloxx ETF and Putman Absolute Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bondbloxx ETF and Putman Absolute
The main advantage of trading using opposite Bondbloxx ETF and Putman Absolute positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bondbloxx ETF position performs unexpectedly, Putman Absolute 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 Putman Absolute will offset losses from the drop in Putman Absolute's long position.| Bondbloxx ETF vs. Bondbloxx ETF Trust | Bondbloxx ETF vs. Bondbloxx ETF Trust | Bondbloxx ETF vs. Bondbloxx ETF Trust | Bondbloxx ETF vs. Bondbloxx ETF Trust |
| Putman Absolute vs. Putnam Equity Income | Putman Absolute vs. Putnam Tax Exempt | Putman Absolute vs. Putnam Floating Rate | Putman Absolute vs. Putnam High Yield |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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