Correlation Between Mainstay Epoch and Ab Core
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Ab Core 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 Ab Core 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 Ab E Opportunities, you can compare the effects of market volatilities on Mainstay Epoch and Ab Core 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 Ab Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Ab Core.
Diversification Opportunities for Mainstay Epoch and Ab Core
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and ADGAX is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Equity and Ab E Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab E Opportunities 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 Ab Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab E Opportunities has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Ab Core go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Ab Core
Assuming the 90 days horizon Mainstay Epoch is expected to generate 1.18 times less return on investment than Ab Core. But when comparing it to its historical volatility, Mainstay Epoch Equity is 1.17 times less risky than Ab Core. It trades about 0.09 of its potential returns per unit of risk. Ab E Opportunities is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,823 in Ab E Opportunities on August 30, 2024 and sell it today you would earn a total of 783.00 from holding Ab E Opportunities or generate 42.95% 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. Ab E Opportunities
Performance |
| Timeline |
| Mainstay Epoch Equity |
| Ab E Opportunities |
Mainstay Epoch and Ab Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Ab Core
The main advantage of trading using opposite Mainstay Epoch and Ab Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Ab Core 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 Ab Core will offset losses from the drop in Ab Core's long position.| Mainstay Epoch vs. Dodge Cox Stock | Mainstay Epoch vs. American Mutual Fund | Mainstay Epoch vs. American Funds American | Mainstay Epoch vs. American Funds American |
| Ab Core vs. Multimanager Lifestyle Aggressive | Ab Core vs. Needham Aggressive Growth | Ab Core vs. Siit High Yield | Ab Core vs. California High Yield Municipal |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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