Correlation Between Intal High and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Intal High 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 Intal High and Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intal High Relative and Mainstay Epoch Equity, you can compare the effects of market volatilities on Intal High 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 Intal High with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intal High and Mainstay Epoch.
Diversification Opportunities for Intal High and Mainstay Epoch
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intal and Mainstay is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Intal High Relative 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 Intal High 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 Intal High Relative 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 Intal High i.e., Intal High and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Intal High and Mainstay Epoch
Assuming the 90 days horizon Intal High Relative is expected to generate 0.32 times more return on investment than Mainstay Epoch. However, Intal High Relative is 3.16 times less risky than Mainstay Epoch. It trades about 0.24 of its potential returns per unit of risk. Mainstay Epoch Equity is currently generating about -0.23 per unit of risk. If you would invest 1,274 in Intal High Relative on September 13, 2024 and sell it today you would earn a total of 37.00 from holding Intal High Relative or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intal High Relative vs. Mainstay Epoch Equity
Performance |
| Timeline |
| Intal High Relative |
| Mainstay Epoch Equity |
Intal High and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intal High and Mainstay Epoch
The main advantage of trading using opposite Intal High and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intal High 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.| Intal High vs. Dfa International | Intal High vs. Dfa Inflation Protected | Intal High vs. Dfa International Small | Intal High vs. Dfa International |
| Mainstay Epoch vs. Mainstay Tax Free | Mainstay Epoch vs. Mainstay Large Cap | Mainstay Epoch vs. Mainstay Large Cap | Mainstay Epoch vs. Mainstay Large 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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