Correlation Between Mainstay Epoch and Mainstay Short
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Mainstay Short 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 Short 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 Short Duration, you can compare the effects of market volatilities on Mainstay Epoch and Mainstay Short 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 Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Mainstay Short.
Diversification Opportunities for Mainstay Epoch and Mainstay Short
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mainstay and Mainstay is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Equity and Mainstay Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Short Duration 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 Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Short Duration has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Mainstay Short go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Mainstay Short
Assuming the 90 days horizon Mainstay Epoch Equity is expected to generate 6.12 times more return on investment than Mainstay Short. However, Mainstay Epoch is 6.12 times more volatile than Mainstay Short Duration. It trades about 0.19 of its potential returns per unit of risk. Mainstay Short Duration is currently generating about 0.48 per unit of risk. If you would invest 2,102 in Mainstay Epoch Equity on October 23, 2024 and sell it today you would earn a total of 48.00 from holding Mainstay Epoch Equity or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Epoch Equity vs. Mainstay Short Duration
Performance |
| Timeline |
| Mainstay Epoch Equity |
| Mainstay Short Duration |
Mainstay Epoch and Mainstay Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Mainstay Short
The main advantage of trading using opposite Mainstay Epoch and Mainstay Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Mainstay Short 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 Short will offset losses from the drop in Mainstay Short's long position.| Mainstay Epoch vs. Science Technology Fund | Mainstay Epoch vs. Red Oak Technology | Mainstay Epoch vs. Vanguard Information Technology | Mainstay Epoch vs. Allianzgi Technology Fund |
| Mainstay Short vs. Elfun Government Money | Mainstay Short vs. Intermediate Government Bond | Mainstay Short vs. Voya Government Money | Mainstay Short vs. Ridgeworth Seix Government |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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