Correlation Between Diamond Hill and Putnam ETF
Can any of the company-specific risk be diversified away by investing in both Diamond Hill 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 Diamond Hill and Putnam ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Diamond Hill Funds and Putnam ETF Trust, you can compare the effects of market volatilities on Diamond Hill 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 Diamond Hill with a short position of Putnam ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamond Hill and Putnam ETF.
Diversification Opportunities for Diamond Hill and Putnam ETF
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Diamond and Putnam is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Diamond Hill 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 Diamond Hill 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 Diamond Hill 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 Diamond Hill i.e., Diamond Hill and Putnam ETF go up and down completely randomly.
Pair Corralation between Diamond Hill and Putnam ETF
Given the investment horizon of 90 days Diamond Hill Funds is expected to under-perform the Putnam ETF. But the etf apears to be less risky and, when comparing its historical volatility, Diamond Hill Funds is 1.39 times less risky than Putnam ETF. The etf trades about 0.0 of its potential returns per unit of risk. The Putnam ETF Trust is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 6,095 in Putnam ETF Trust on September 6, 2025 and sell it today you would earn a total of 586.92 from holding Putnam ETF Trust or generate 9.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 76.56% |
| Values | Daily Returns |
Diamond Hill Funds vs. Putnam ETF Trust
Performance |
| Timeline |
| Diamond Hill Funds |
| Putnam ETF Trust |
Diamond Hill and Putnam ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamond Hill and Putnam ETF
The main advantage of trading using opposite Diamond Hill and Putnam ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamond Hill 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.| Diamond Hill vs. Vanguard Value Index | Diamond Hill vs. Vanguard High Dividend | Diamond Hill vs. iShares Russell 1000 | Diamond Hill vs. iShares Core Dividend |
| Putnam ETF vs. Vanguard FTSE Emerging | Putnam ETF vs. iShares Core MSCI | Putnam ETF vs. Global X Funds | Putnam ETF vs. iShares MSCI Emerging |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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