Correlation Between Mainstay Epoch and Dreyfus/standish
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Dreyfus/standish 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 Dreyfus/standish into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Epoch Global and Dreyfusstandish Global Fixed, you can compare the effects of market volatilities on Mainstay Epoch and Dreyfus/standish 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 Dreyfus/standish. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Dreyfus/standish.
Diversification Opportunities for Mainstay Epoch and Dreyfus/standish
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mainstay and Dreyfus/standish is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Global and Dreyfusstandish Global Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfusstandish Global 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 Global are associated (or correlated) with Dreyfus/standish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfusstandish Global has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Dreyfus/standish go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Dreyfus/standish
Assuming the 90 days horizon Mainstay Epoch Global is expected to generate 2.5 times more return on investment than Dreyfus/standish. However, Mainstay Epoch is 2.5 times more volatile than Dreyfusstandish Global Fixed. It trades about 0.09 of its potential returns per unit of risk. Dreyfusstandish Global Fixed is currently generating about 0.09 per unit of risk. If you would invest 1,847 in Mainstay Epoch Global on August 30, 2024 and sell it today you would earn a total of 600.00 from holding Mainstay Epoch Global or generate 32.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Epoch Global vs. Dreyfusstandish Global Fixed
Performance |
| Timeline |
| Mainstay Epoch Global |
| Dreyfusstandish Global |
Mainstay Epoch and Dreyfus/standish Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Dreyfus/standish
The main advantage of trading using opposite Mainstay Epoch and Dreyfus/standish positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Dreyfus/standish 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 Dreyfus/standish will offset losses from the drop in Dreyfus/standish's long position.| Mainstay Epoch vs. 1919 Financial Services | Mainstay Epoch vs. Davis Financial Fund | Mainstay Epoch vs. First Trust Specialty | Mainstay Epoch vs. Financials Ultrasector Profund |
| Dreyfus/standish vs. Dfa Five Year Global | Dreyfus/standish vs. HUMANA INC | Dreyfus/standish vs. Aquagold International | Dreyfus/standish vs. Barloworld Ltd ADR |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |