Correlation Between Putnam Focused and JPMorgan BetaBuilders
Can any of the company-specific risk be diversified away by investing in both Putnam Focused and JPMorgan BetaBuilders 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 Focused and JPMorgan BetaBuilders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Focused Large and JPMorgan BetaBuilders Europe, you can compare the effects of market volatilities on Putnam Focused and JPMorgan BetaBuilders 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 Focused with a short position of JPMorgan BetaBuilders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Focused and JPMorgan BetaBuilders.
Diversification Opportunities for Putnam Focused and JPMorgan BetaBuilders
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Putnam and JPMorgan is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Focused Large and JPMorgan BetaBuilders Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan BetaBuilders and Putnam Focused 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 Focused Large are associated (or correlated) with JPMorgan BetaBuilders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan BetaBuilders has no effect on the direction of Putnam Focused i.e., Putnam Focused and JPMorgan BetaBuilders go up and down completely randomly.
Pair Corralation between Putnam Focused and JPMorgan BetaBuilders
Given the investment horizon of 90 days Putnam Focused Large is expected to generate 0.92 times more return on investment than JPMorgan BetaBuilders. However, Putnam Focused Large is 1.08 times less risky than JPMorgan BetaBuilders. It trades about 0.16 of its potential returns per unit of risk. JPMorgan BetaBuilders Europe is currently generating about 0.1 per unit of risk. If you would invest 4,178 in Putnam Focused Large on September 8, 2025 and sell it today you would earn a total of 290.00 from holding Putnam Focused Large or generate 6.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Focused Large vs. JPMorgan BetaBuilders Europe
Performance |
| Timeline |
| Putnam Focused Large |
| JPMorgan BetaBuilders |
Putnam Focused and JPMorgan BetaBuilders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Focused and JPMorgan BetaBuilders
The main advantage of trading using opposite Putnam Focused and JPMorgan BetaBuilders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Focused position performs unexpectedly, JPMorgan BetaBuilders 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 JPMorgan BetaBuilders will offset losses from the drop in JPMorgan BetaBuilders' long position.| Putnam Focused vs. FT Vest Equity | Putnam Focused vs. Northern Lights | Putnam Focused vs. Diamond Hill Funds | Putnam Focused vs. Dimensional International High |
| JPMorgan BetaBuilders vs. iShares MSCI Emerging | JPMorgan BetaBuilders vs. Global X Funds | JPMorgan BetaBuilders vs. Franklin FTSE Asia | JPMorgan BetaBuilders vs. Franklin FTSE Europe |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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