Correlation Between Europac Gold and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Europac Gold 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 Europac Gold and Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europac Gold Fund and Mainstay Epoch Equity, you can compare the effects of market volatilities on Europac Gold 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 Europac Gold with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europac Gold and Mainstay Epoch.
Diversification Opportunities for Europac Gold and Mainstay Epoch
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Europac and Mainstay is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Europac Gold Fund 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 Europac Gold 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 Europac Gold Fund 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 Europac Gold i.e., Europac Gold and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Europac Gold and Mainstay Epoch
Assuming the 90 days horizon Europac Gold Fund is expected to generate 2.26 times more return on investment than Mainstay Epoch. However, Europac Gold is 2.26 times more volatile than Mainstay Epoch Equity. It trades about 0.04 of its potential returns per unit of risk. Mainstay Epoch Equity is currently generating about 0.05 per unit of risk. If you would invest 793.00 in Europac Gold Fund on November 27, 2024 and sell it today you would earn a total of 277.00 from holding Europac Gold Fund or generate 34.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Europac Gold Fund vs. Mainstay Epoch Equity
Performance |
| Timeline |
| Europac Gold |
| Mainstay Epoch Equity |
Europac Gold and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europac Gold and Mainstay Epoch
The main advantage of trading using opposite Europac Gold and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europac Gold 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.| Europac Gold vs. Europac International Value | Europac Gold vs. Europac International Dividend | Europac Gold vs. Ep Emerging Markets | Europac Gold vs. Europac International Bond |
| Mainstay Epoch vs. Mainstay Sp 500 | Mainstay Epoch vs. Mainstay Balanced Fund | Mainstay Epoch vs. Mainstay Balanced Fund | Mainstay Epoch vs. Mainstay Tax Advantaged |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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