Correlation Between Mainstay Epoch and Putnam Convertible
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Putnam Convertible 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 Mainstay Epoch and Putnam Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Epoch Small and Putnam Convertible Incm Gwth, you can compare the effects of market volatilities on Mainstay Epoch and Putnam Convertible 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 Mainstay Epoch with a short position of Putnam Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Putnam Convertible.
Diversification Opportunities for Mainstay Epoch and Putnam Convertible
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Putnam is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Small and Putnam Convertible Incm Gwth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Convertible Incm and Mainstay Epoch 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 Mainstay Epoch Small are associated (or correlated) with Putnam Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Convertible Incm has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Putnam Convertible go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Putnam Convertible
Assuming the 90 days horizon Mainstay Epoch Small is expected to generate 2.41 times more return on investment than Putnam Convertible. However, Mainstay Epoch is 2.41 times more volatile than Putnam Convertible Incm Gwth. It trades about 0.05 of its potential returns per unit of risk. Putnam Convertible Incm Gwth is currently generating about 0.09 per unit of risk. If you would invest 1,560 in Mainstay Epoch Small on September 5, 2024 and sell it today you would earn a total of 525.00 from holding Mainstay Epoch Small or generate 33.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Epoch Small vs. Putnam Convertible Incm Gwth
Performance |
| Timeline |
| Mainstay Epoch Small |
| Putnam Convertible Incm |
Mainstay Epoch and Putnam Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Putnam Convertible
The main advantage of trading using opposite Mainstay Epoch and Putnam Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Putnam Convertible 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 Convertible will offset losses from the drop in Putnam Convertible's long position.| Mainstay Epoch vs. Mainstay High Yield | Mainstay Epoch vs. Mainstay Tax Free | Mainstay Epoch vs. Mainstay Income Builder | Mainstay Epoch vs. Mainstay Large Cap |
| Putnam Convertible vs. John Hancock Financial | Putnam Convertible vs. Prudential Financial Services | Putnam Convertible vs. Mesirow Financial Small | Putnam Convertible vs. Gabelli Global Financial |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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