Correlation Between Mainstay Epoch and Mainstay Vertible
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Mainstay Vertible 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 Vertible 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 Vertible Fund, you can compare the effects of market volatilities on Mainstay Epoch and Mainstay Vertible 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 Vertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Mainstay Vertible.
Diversification Opportunities for Mainstay Epoch and Mainstay Vertible
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MainStay and Mainstay is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Equity and Mainstay Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Vertible 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 Vertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Vertible has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Mainstay Vertible go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Mainstay Vertible
Assuming the 90 days horizon Mainstay Epoch Equity is expected to generate 0.96 times more return on investment than Mainstay Vertible. However, Mainstay Epoch Equity is 1.04 times less risky than Mainstay Vertible. It trades about 0.13 of its potential returns per unit of risk. Mainstay Vertible Fund is currently generating about -0.18 per unit of risk. If you would invest 2,161 in Mainstay Epoch Equity on November 29, 2024 and sell it today you would earn a total of 27.00 from holding Mainstay Epoch Equity or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Epoch Equity vs. Mainstay Vertible Fund
Performance |
| Timeline |
| Mainstay Epoch Equity |
| Mainstay Vertible |
Mainstay Epoch and Mainstay Vertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Mainstay Vertible
The main advantage of trading using opposite Mainstay Epoch and Mainstay Vertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Mainstay Vertible 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 Vertible will offset losses from the drop in Mainstay Vertible's long position.| Mainstay Epoch vs. Metropolitan West High | Mainstay Epoch vs. Aqr Risk Parity | Mainstay Epoch vs. Mesirow Financial High | Mainstay Epoch vs. Virtus High Yield |
| Mainstay Vertible vs. Mainstay Sp 500 | Mainstay Vertible vs. Mainstay Balanced Fund | Mainstay Vertible vs. Mainstay Balanced Fund | Mainstay Vertible 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |