Correlation Between Putnam Panagora and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Putnam Panagora and Mainstay Epoch 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 Panagora and Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnam Panagora Risk and Mainstay Epoch Global, you can compare the effects of market volatilities on Putnam Panagora and Mainstay Epoch 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 Panagora with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Panagora and Mainstay Epoch.
Diversification Opportunities for Putnam Panagora and Mainstay Epoch
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Putnam and Mainstay is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Panagora Risk and Mainstay Epoch Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Global and Putnam Panagora 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 Panagora Risk are associated (or correlated) with Mainstay Epoch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Epoch Global has no effect on the direction of Putnam Panagora i.e., Putnam Panagora and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Putnam Panagora and Mainstay Epoch
Assuming the 90 days horizon Putnam Panagora is expected to generate 3.07 times less return on investment than Mainstay Epoch. But when comparing it to its historical volatility, Putnam Panagora Risk is 1.92 times less risky than Mainstay Epoch. It trades about 0.05 of its potential returns per unit of risk. Mainstay Epoch Global is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,844 in Mainstay Epoch Global on August 24, 2024 and sell it today you would earn a total of 550.00 from holding Mainstay Epoch Global or generate 29.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 7.68% |
| Values | Daily Returns |
Putnam Panagora Risk vs. Mainstay Epoch Global
Performance |
| Timeline |
| Putnam Panagora Risk |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mainstay Epoch Global |
Putnam Panagora and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Panagora and Mainstay Epoch
The main advantage of trading using opposite Putnam Panagora and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Panagora position performs unexpectedly, Mainstay Epoch 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 Mainstay Epoch will offset losses from the drop in Mainstay Epoch's long position.| Putnam Panagora vs. Acm Tactical Income | Putnam Panagora vs. Eic Value Fund | Putnam Panagora vs. Ab E Opportunities | Putnam Panagora vs. Ab Value Fund |
| Mainstay Epoch vs. Praxis Growth Index | Mainstay Epoch vs. Artisan Small Cap | Mainstay Epoch vs. Qs Growth Fund | Mainstay Epoch vs. Champlain Mid Cap |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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