Correlation Between Mainstay Epoch and Mainstay Moderate
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Mainstay Moderate 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 Mainstay Epoch and Mainstay Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Epoch Equity and Mainstay Moderate Etf, you can compare the effects of market volatilities on Mainstay Epoch and Mainstay Moderate 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 Mainstay Epoch with a short position of Mainstay Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Mainstay Moderate.
Diversification Opportunities for Mainstay Epoch and Mainstay Moderate
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Mainstay is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Equity and Mainstay Moderate Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Moderate Etf and Mainstay Epoch 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 Mainstay Epoch Equity are associated (or correlated) with Mainstay Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Moderate Etf has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Mainstay Moderate go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Mainstay Moderate
Assuming the 90 days horizon Mainstay Epoch Equity is expected to generate 1.41 times more return on investment than Mainstay Moderate. However, Mainstay Epoch is 1.41 times more volatile than Mainstay Moderate Etf. It trades about 0.18 of its potential returns per unit of risk. Mainstay Moderate Etf is currently generating about 0.13 per unit of risk. If you would invest 2,251 in Mainstay Epoch Equity on August 27, 2024 and sell it today you would earn a total of 59.00 from holding Mainstay Epoch Equity or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Epoch Equity vs. Mainstay Moderate Etf
Performance |
| Timeline |
| Mainstay Epoch Equity |
| Mainstay Moderate Etf |
Mainstay Epoch and Mainstay Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Mainstay Moderate
The main advantage of trading using opposite Mainstay Epoch and Mainstay Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Mainstay Moderate 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 Moderate will offset losses from the drop in Mainstay Moderate's long position.| Mainstay Epoch vs. Mainstay High Yield | Mainstay Epoch vs. Mainstay Tax Free | Mainstay Epoch vs. Mainstay Income Builder | Mainstay Epoch vs. Mainstay Large Cap |
| Mainstay Moderate vs. Prudential Health Sciences | Mainstay Moderate vs. Fidelity Advisor Health | Mainstay Moderate vs. Health Biotchnology Portfolio | Mainstay Moderate vs. Highland Longshort Healthcare |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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