Correlation Between Putnam Convertible and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Putnam Convertible 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 Convertible 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 Convertible Incm Gwth and Mainstay Epoch Small, you can compare the effects of market volatilities on Putnam Convertible 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 Convertible with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnam Convertible and Mainstay Epoch.
Diversification Opportunities for Putnam Convertible and Mainstay Epoch
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Putnam and Mainstay is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Putnam Convertible Incm Gwth and Mainstay Epoch Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Small and Putnam Convertible 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 Convertible Incm Gwth 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 Small has no effect on the direction of Putnam Convertible i.e., Putnam Convertible and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Putnam Convertible and Mainstay Epoch
Assuming the 90 days horizon Putnam Convertible Incm Gwth is expected to generate 0.48 times more return on investment than Mainstay Epoch. However, Putnam Convertible Incm Gwth is 2.08 times less risky than Mainstay Epoch. It trades about 0.05 of its potential returns per unit of risk. Mainstay Epoch Small is currently generating about 0.01 per unit of risk. If you would invest 2,584 in Putnam Convertible Incm Gwth on September 12, 2024 and sell it today you would earn a total of 15.00 from holding Putnam Convertible Incm Gwth or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnam Convertible Incm Gwth vs. Mainstay Epoch Small
Performance |
| Timeline |
| Putnam Convertible Incm |
| Mainstay Epoch Small |
Putnam Convertible and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnam Convertible and Mainstay Epoch
The main advantage of trading using opposite Putnam Convertible and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnam Convertible 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 Convertible vs. Sp Midcap Index | Putnam Convertible vs. Pnc Emerging Markets | Putnam Convertible vs. Ep Emerging Markets | Putnam Convertible vs. Ab All Market |
| Mainstay Epoch vs. Invesco Gold Special | Mainstay Epoch vs. Europac Gold Fund | Mainstay Epoch vs. Franklin Gold Precious | Mainstay Epoch vs. Great West Goldman Sachs |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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