Correlation Between Artisan Emerging and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Artisan Emerging 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 Artisan Emerging and Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Emerging Markets and Mainstay Epoch Capital, you can compare the effects of market volatilities on Artisan Emerging 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 Artisan Emerging with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Emerging and Mainstay Epoch.
Diversification Opportunities for Artisan Emerging and Mainstay Epoch
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Artisan and Mainstay is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Emerging Markets and Mainstay Epoch Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Capital and Artisan Emerging 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 Artisan Emerging Markets 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 Capital has no effect on the direction of Artisan Emerging i.e., Artisan Emerging and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Artisan Emerging and Mainstay Epoch
Assuming the 90 days horizon Artisan Emerging is expected to generate 213.33 times less return on investment than Mainstay Epoch. But when comparing it to its historical volatility, Artisan Emerging Markets is 2.91 times less risky than Mainstay Epoch. It trades about 0.0 of its potential returns per unit of risk. Mainstay Epoch Capital is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,549 in Mainstay Epoch Capital on August 30, 2024 and sell it today you would earn a total of 21.00 from holding Mainstay Epoch Capital or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Artisan Emerging Markets vs. Mainstay Epoch Capital
Performance |
| Timeline |
| Artisan Emerging Markets |
| Mainstay Epoch Capital |
Artisan Emerging and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Emerging and Mainstay Epoch
The main advantage of trading using opposite Artisan Emerging and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Emerging 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.| Artisan Emerging vs. Sterling Capital Stratton | Artisan Emerging vs. Virtus Real Estate | Artisan Emerging vs. Franklin Real Estate | Artisan Emerging vs. Redwood Real Estate |
| Mainstay Epoch vs. Angel Oak Ultrashort | Mainstay Epoch vs. Performance Trust Strategic | Mainstay Epoch vs. Blrc Sgy Mnp | 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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