Correlation Between Mainstay Epoch and Hartford Moderate
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Hartford Moderate 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 Hartford Moderate 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 Hartford Moderate Allocation, you can compare the effects of market volatilities on Mainstay Epoch and Hartford Moderate 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 Hartford Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Hartford Moderate.
Diversification Opportunities for Mainstay Epoch and Hartford Moderate
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and HARTFORD is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Global and Hartford Moderate Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Moderate 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 Hartford Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Moderate has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Hartford Moderate go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Hartford Moderate
Assuming the 90 days horizon Mainstay Epoch is expected to generate 1.99 times less return on investment than Hartford Moderate. In addition to that, Mainstay Epoch is 1.17 times more volatile than Hartford Moderate Allocation. It trades about 0.06 of its total potential returns per unit of risk. Hartford Moderate Allocation is currently generating about 0.14 per unit of volatility. If you would invest 1,321 in Hartford Moderate Allocation on August 30, 2024 and sell it today you would earn a total of 19.00 from holding Hartford Moderate Allocation or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Epoch Global vs. Hartford Moderate Allocation
Performance |
| Timeline |
| Mainstay Epoch Global |
| Hartford Moderate |
Mainstay Epoch and Hartford Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Hartford Moderate
The main advantage of trading using opposite Mainstay Epoch and Hartford Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Hartford Moderate 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 Hartford Moderate will offset losses from the drop in Hartford Moderate'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 |
| Hartford Moderate vs. American Balanced Fund | Hartford Moderate vs. American Balanced Fund | Hartford Moderate vs. HUMANA INC | Hartford Moderate vs. Aquagold International |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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