Correlation Between Putnam ETF and Touchstone Strategic
Can any of the company-specific risk be diversified away by investing in both Putnam ETF and Touchstone Strategic 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 Touchstone Strategic 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 Touchstone Strategic Income, you can compare the effects of market volatilities on Putnam ETF and Touchstone Strategic 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 Touchstone Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam ETF and Touchstone Strategic.
Diversification Opportunities for Putnam ETF and Touchstone Strategic
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Putnam and Touchstone is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Putnam ETF Trust and Touchstone Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Strategic 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 Touchstone Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Strategic has no effect on the direction of Putnam ETF i.e., Putnam ETF and Touchstone Strategic go up and down completely randomly.
Pair Corralation between Putnam ETF and Touchstone Strategic
Given the investment horizon of 90 days Putnam ETF is expected to generate 1.26 times less return on investment than Touchstone Strategic. But when comparing it to its historical volatility, Putnam ETF Trust is 1.28 times less risky than Touchstone Strategic. It trades about 0.17 of its potential returns per unit of risk. Touchstone Strategic Income is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,575 in Touchstone Strategic Income on September 1, 2025 and sell it today you would earn a total of 77.00 from holding Touchstone Strategic Income or generate 2.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam ETF Trust vs. Touchstone Strategic Income
Performance |
| Timeline |
| Putnam ETF Trust |
| Touchstone Strategic |
Putnam ETF and Touchstone Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam ETF and Touchstone Strategic
The main advantage of trading using opposite Putnam ETF and Touchstone Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam ETF position performs unexpectedly, Touchstone Strategic 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 Touchstone Strategic will offset losses from the drop in Touchstone Strategic's long position.| Putnam ETF vs. BondBloxx ETF Trust | Putnam ETF vs. Virtus ETF Trust | Putnam ETF vs. Vanguard High Yield Active | Putnam ETF vs. Virtus ETF Trust |
| Touchstone Strategic vs. Valued Advisers Trust | Touchstone Strategic vs. Columbia Diversified Fixed | Touchstone Strategic vs. Principal Exchange Traded Funds | Touchstone Strategic vs. MFS Active Core |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |