Correlation Between Mainstay Epoch and American Mutual
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and American Mutual 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 American Mutual 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 American Mutual Fund, you can compare the effects of market volatilities on Mainstay Epoch and American Mutual 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 American Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and American Mutual.
Diversification Opportunities for Mainstay Epoch and American Mutual
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and American is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Equity and American Mutual Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Mutual 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 American Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Mutual has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and American Mutual go up and down completely randomly.
Pair Corralation between Mainstay Epoch and American Mutual
Assuming the 90 days horizon Mainstay Epoch Equity is expected to generate 1.1 times more return on investment than American Mutual. However, Mainstay Epoch is 1.1 times more volatile than American Mutual Fund. It trades about 0.32 of its potential returns per unit of risk. American Mutual Fund is currently generating about 0.27 per unit of risk. If you would invest 2,345 in Mainstay Epoch Equity on September 1, 2024 and sell it today you would earn a total of 111.00 from holding Mainstay Epoch Equity or generate 4.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mainstay Epoch Equity vs. American Mutual Fund
Performance |
| Timeline |
| Mainstay Epoch Equity |
| American Mutual |
Mainstay Epoch and American Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and American Mutual
The main advantage of trading using opposite Mainstay Epoch and American Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, American Mutual 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 American Mutual will offset losses from the drop in American Mutual's long position.| Mainstay Epoch vs. Science Technology Fund | Mainstay Epoch vs. Janus Global Technology | Mainstay Epoch vs. Goldman Sachs Technology | Mainstay Epoch vs. Fidelity Advisor Technology |
| American Mutual vs. Balanced Fund Investor | American Mutual vs. Qs Growth Fund | American Mutual vs. Shelton Funds | American Mutual vs. Small Cap Stock |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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