Correlation Between Ab Bond and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Ab Bond 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 Ab Bond and Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Bond Inflation and Mainstay Epoch Equity, you can compare the effects of market volatilities on Ab Bond 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 Ab Bond with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Bond and Mainstay Epoch.
Diversification Opportunities for Ab Bond and Mainstay Epoch
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANBIX and Mainstay is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Ab Bond Inflation and Mainstay Epoch Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Equity and Ab Bond 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 Ab Bond Inflation 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 Equity has no effect on the direction of Ab Bond i.e., Ab Bond and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Ab Bond and Mainstay Epoch
Assuming the 90 days horizon Ab Bond is expected to generate 7.0 times less return on investment than Mainstay Epoch. But when comparing it to its historical volatility, Ab Bond Inflation is 4.27 times less risky than Mainstay Epoch. It trades about 0.21 of its potential returns per unit of risk. Mainstay Epoch Equity is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 2,223 in Mainstay Epoch Equity on September 2, 2024 and sell it today you would earn a total of 108.00 from holding Mainstay Epoch Equity or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Bond Inflation vs. Mainstay Epoch Equity
Performance |
| Timeline |
| Ab Bond Inflation |
| Mainstay Epoch Equity |
Ab Bond and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Bond and Mainstay Epoch
The main advantage of trading using opposite Ab Bond and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Bond 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.| Ab Bond vs. Ab Global E | Ab Bond vs. Ab Global E | Ab Bond vs. Ab Global E | Ab Bond vs. Ab Minnesota Portfolio |
| Mainstay Epoch vs. Victory Strategic Allocation | Mainstay Epoch vs. Aqr Large Cap | Mainstay Epoch vs. Touchstone Large Cap | Mainstay Epoch vs. T Rowe Price |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |