Putnam Sustainable Future Etf Volatility
| PFUT Etf | USD 26.45 0.33 1.26% |
Currently, Putnam Sustainable Future is very steady. Putnam Sustainable Future maintains Sharpe Ratio (i.e., Efficiency) of 0.13, which implies the entity had a 0.13% return per unit of risk over the last 3 months. We have found thirty technical indicators for Putnam Sustainable Future, which you can use to evaluate the volatility of the etf. Please check Putnam Sustainable's Risk Adjusted Performance of 0.117, semi deviation of 0.7575, and Coefficient Of Variation of 663.99 to confirm if the risk estimate we provide is consistent with the expected return of 0.12%. Key indicators related to Putnam Sustainable's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Putnam Sustainable Etf volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Putnam daily returns, and it is calculated using variance and standard deviation. We also use Putnam's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Putnam Sustainable volatility.
Putnam |
Putnam Sustainable Future Etf Volatility Analysis
Volatility refers to the frequency at which Putnam Sustainable etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Putnam Sustainable's price changes. Investors will then calculate the volatility of Putnam Sustainable's etf to predict their future moves. A etf that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A etf with relatively stable price changes has low volatility. A highly volatile etf is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Putnam Sustainable's volatility:
Historical Volatility
This type of etf volatility measures Putnam Sustainable's fluctuations based on previous trends. It's commonly used to predict Putnam Sustainable's future behavior based on its past. However, it cannot conclusively determine the future direction of the etf.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Putnam Sustainable's current market price. This means that the etf will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Putnam Sustainable's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Putnam Sustainable Future Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Putnam Sustainable Projected Return Density Against Market
Given the investment horizon of 90 days the etf has the beta coefficient of 1.0006 indicating Putnam Sustainable Future market returns are related to returns on the market. As the market goes up or down, Putnam Sustainable is expected to follow.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Putnam Sustainable or Putnam sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Putnam Sustainable's price will be affected by overall etf market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Putnam etf's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Putnam Sustainable Future has an alpha of 0.0055, implying that it can generate a 0.0055 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
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What Drives a Putnam Sustainable Price Volatility?
Several factors can influence a etf's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Putnam Sustainable Etf Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Putnam Sustainable is 760.85. The daily returns are distributed with a variance of 0.8 and standard deviation of 0.89. The mean deviation of Putnam Sustainable Future is currently at 0.68. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.01 | |
β | Beta against Dow Jones | 1.00 | |
σ | Overall volatility | 0.89 | |
Ir | Information ratio | 0.01 |
Putnam Sustainable Etf Return Volatility
Putnam Sustainable historical daily return volatility represents how much of Putnam Sustainable etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The exchange-traded fund inherits 0.8935% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7626% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Putnam Sustainable Volatility
Volatility is a rate at which the price of Putnam Sustainable or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Putnam Sustainable may increase or decrease. In other words, similar to Putnam's beta indicator, it measures the risk of Putnam Sustainable and helps estimate the fluctuations that may happen in a short period of time. So if prices of Putnam Sustainable fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.The fund invests mainly in common stocks of U.S. companies of any size, with a focus on companies whose products and services Putnam Management believes provide solutions that directly contribute to sustainable social, environmental and economic development . Putnam Sustainable is traded on NYSEARCA Exchange in the United States.
Putnam Sustainable's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Putnam Etf over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Putnam Sustainable's price varies over time.
3 ways to utilize Putnam Sustainable's volatility to invest better
Higher Putnam Sustainable's etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Putnam Sustainable Future etf is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Putnam Sustainable Future etf volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Putnam Sustainable Future investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Putnam Sustainable's etf can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Putnam Sustainable's etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Putnam Sustainable Investment Opportunity
Putnam Sustainable Future has a volatility of 0.89 and is 1.17 times more volatile than Dow Jones Industrial. 7 percent of all equities and portfolios are less risky than Putnam Sustainable. You can use Putnam Sustainable Future to enhance the returns of your portfolios. The etf experiences a large bullish trend. Check odds of Putnam Sustainable to be traded at $29.1 in 90 days.Very poor diversification
The correlation between Putnam Sustainable Future and DJI is 0.85 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Sustainable Future and DJI in the same portfolio, assuming nothing else is changed.
Putnam Sustainable Additional Risk Indicators
The analysis of Putnam Sustainable's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Putnam Sustainable's investment and either accepting that risk or mitigating it. Along with some common measures of Putnam Sustainable etf's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.117 | |||
| Market Risk Adjusted Performance | 0.1362 | |||
| Mean Deviation | 0.6967 | |||
| Semi Deviation | 0.7575 | |||
| Downside Deviation | 0.9223 | |||
| Coefficient Of Variation | 663.99 | |||
| Standard Deviation | 0.9052 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential etfs, we recommend comparing similar etfs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Putnam Sustainable Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Putnam Sustainable as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Putnam Sustainable's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Putnam Sustainable's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Putnam Sustainable Future.
When determining whether Putnam Sustainable Future is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Putnam Etf is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Putnam Sustainable Future Etf. Highlighted below are key reports to facilitate an investment decision about Putnam Sustainable Future Etf: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Putnam Sustainable Future. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in employment. You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
The market value of Putnam Sustainable Future is measured differently than its book value, which is the value of Putnam that is recorded on the company's balance sheet. Investors also form their own opinion of Putnam Sustainable's value that differs from its market value or its book value, called intrinsic value, which is Putnam Sustainable's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Putnam Sustainable's market value can be influenced by many factors that don't directly affect Putnam Sustainable's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Putnam Sustainable's value and its price as these two are different measures arrived at by different means. Investors typically determine if Putnam Sustainable is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Putnam Sustainable's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.