Correlation Between Mainstay Epoch and Gabelli Global
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Gabelli Global 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 Gabelli Global 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 Gabelli Global Financial, you can compare the effects of market volatilities on Mainstay Epoch and Gabelli Global 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 Gabelli Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Gabelli Global.
Diversification Opportunities for Mainstay Epoch and Gabelli Global
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mainstay and Gabelli is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Global and Gabelli Global Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Global Financial 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 Gabelli Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Global Financial has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Gabelli Global go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Gabelli Global
Assuming the 90 days horizon Mainstay Epoch is expected to generate 1.47 times less return on investment than Gabelli Global. But when comparing it to its historical volatility, Mainstay Epoch Global is 1.69 times less risky than Gabelli Global. It trades about 0.14 of its potential returns per unit of risk. Gabelli Global Financial is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,407 in Gabelli Global Financial on September 1, 2024 and sell it today you would earn a total of 226.00 from holding Gabelli Global Financial or generate 16.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Mainstay Epoch Global vs. Gabelli Global Financial
Performance |
| Timeline |
| Mainstay Epoch Global |
| Gabelli Global Financial |
Mainstay Epoch and Gabelli Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Gabelli Global
The main advantage of trading using opposite Mainstay Epoch and Gabelli Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Gabelli Global 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 Gabelli Global will offset losses from the drop in Gabelli Global's long position.| Mainstay Epoch vs. Royce Global Financial | Mainstay Epoch vs. Prudential Jennison Financial | Mainstay Epoch vs. Transamerica Financial Life | Mainstay Epoch vs. John Hancock Financial |
| Gabelli Global vs. Gabelli Esg Fund | Gabelli Global vs. The Gabelli Equity | Gabelli Global vs. Gamco International Growth | Gabelli Global vs. Enterprise Mergers And |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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