Correlation Between Putnam ETF and YieldMax

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Putnam ETF and YieldMax 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 Putnam ETF and YieldMax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam ETF Trust and YieldMax SP 500, you can compare the effects of market volatilities on Putnam ETF and YieldMax 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 Putnam ETF with a short position of YieldMax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam ETF and YieldMax.

Diversification Opportunities for Putnam ETF and YieldMax

0.93
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Putnam and YieldMax is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Putnam ETF Trust and YieldMax SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YieldMax SP 500 and Putnam 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 Putnam ETF Trust are associated (or correlated) with YieldMax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YieldMax SP 500 has no effect on the direction of Putnam ETF i.e., Putnam ETF and YieldMax go up and down completely randomly.

Pair Corralation between Putnam ETF and YieldMax

Given the investment horizon of 90 days Putnam ETF Trust is expected to generate 1.38 times more return on investment than YieldMax. However, Putnam ETF is 1.38 times more volatile than YieldMax SP 500. It trades about 0.19 of its potential returns per unit of risk. YieldMax SP 500 is currently generating about 0.15 per unit of risk. If you would invest  5,918  in Putnam ETF Trust on September 1, 2025 and sell it today you would earn a total of  745.00  from holding Putnam ETF Trust or generate 12.59% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Putnam ETF Trust  vs.  YieldMax SP 500

 Performance 
       Timeline  
Putnam ETF Trust 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Putnam ETF Trust are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile primary indicators, Putnam ETF may actually be approaching a critical reversion point that can send shares even higher in December 2025.
YieldMax SP 500 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in YieldMax SP 500 are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, YieldMax may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Putnam ETF and YieldMax Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Putnam ETF and YieldMax

The main advantage of trading using opposite Putnam ETF and YieldMax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam ETF position performs unexpectedly, YieldMax 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 YieldMax will offset losses from the drop in YieldMax's long position.
The idea behind Putnam ETF Trust and YieldMax SP 500 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.
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

Other Complementary Tools

Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
AI Portfolio Prophet
Use AI to generate optimal portfolios and find profitable investment opportunities
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Technical Analysis
Check basic technical indicators and analysis based on most latest market data