Correlation Between Champlain Small and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Champlain Small 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 Champlain Small and Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champlain Small and Mainstay Epoch Global, you can compare the effects of market volatilities on Champlain Small 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 Champlain Small with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champlain Small and Mainstay Epoch.
Diversification Opportunities for Champlain Small and Mainstay Epoch
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Champlain and Mainstay is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Champlain Small 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 Champlain Small 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 Champlain Small 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 Champlain Small i.e., Champlain Small and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Champlain Small and Mainstay Epoch
Assuming the 90 days horizon Champlain Small is expected to generate 3.08 times more return on investment than Mainstay Epoch. However, Champlain Small is 3.08 times more volatile than Mainstay Epoch Global. It trades about 0.31 of its potential returns per unit of risk. Mainstay Epoch Global is currently generating about 0.22 per unit of risk. If you would invest 2,311 in Champlain Small on September 2, 2024 and sell it today you would earn a total of 241.00 from holding Champlain Small or generate 10.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champlain Small vs. Mainstay Epoch Global
Performance |
| Timeline |
| Champlain Small |
| Mainstay Epoch Global |
Champlain Small and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champlain Small and Mainstay Epoch
The main advantage of trading using opposite Champlain Small and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champlain Small 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.| Champlain Small vs. The Hartford Midcap | Champlain Small vs. Mfs Emerging Markets | Champlain Small vs. Wells Fargo Special | Champlain Small vs. Washington Mutual Investors |
| Mainstay Epoch vs. Jpmorgan Small Cap | Mainstay Epoch vs. Fisher Small Cap | Mainstay Epoch vs. Champlain Small | Mainstay Epoch vs. Ab Small 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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