Correlation Between IVH and Putnam ETF

Can any of the company-specific risk be diversified away by investing in both IVH 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 IVH and Putnam ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between IVH and Putnam ETF Trust, you can compare the effects of market volatilities on IVH 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 IVH with a short position of Putnam ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of IVH and Putnam ETF.

Diversification Opportunities for IVH and Putnam ETF

0.0

Correlation Coefficient

IVH  Putnam ETF

Pay attention - limited upside

The 3 months correlation between IVH and Putnam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IVH 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 IVH 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 IVH 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 IVH i.e., IVH and Putnam ETF go up and down completely randomly.

Pair Corralation between IVH and Putnam ETF

If you would invest  2,218  in Putnam ETF Trust on December 27, 2024 and sell it today you would earn a total of  211.00  from holding Putnam ETF Trust or generate 9.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

IVH  vs.  Putnam ETF Trust

IVH

Risk-Adjusted Performance

Very Weak

Over the last 90 days IVH has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, IVH is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Putnam ETF Trust

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Putnam ETF Trust are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak forward indicators, Putnam ETF may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with IVH and Putnam ETF

The main advantage of trading using opposite IVH and Putnam ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IVH 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.

The idea behind IVH and Putnam ETF Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.