Correlation Between Putnam ETF and YieldMax
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 Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam ETF Trust vs. YieldMax SP 500
Performance |
| Timeline |
| Putnam ETF Trust |
| YieldMax SP 500 |
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.| Putnam ETF vs. FT Vest Equity | Putnam ETF vs. Northern Lights | Putnam ETF vs. Diamond Hill Funds | Putnam ETF vs. Dimensional International High |
| YieldMax vs. FT Vest Equity | YieldMax vs. Northern Lights | YieldMax vs. Diamond Hill Funds | YieldMax vs. Dimensional International High |
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.
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