Correlation Between Mainstay Epoch and Eventide Healthcare
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Eventide Healthcare 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 Eventide Healthcare 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 Eventide Healthcare Life, you can compare the effects of market volatilities on Mainstay Epoch and Eventide Healthcare 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 Eventide Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Eventide Healthcare.
Diversification Opportunities for Mainstay Epoch and Eventide Healthcare
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mainstay and Eventide is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Global and Eventide Healthcare Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eventide Healthcare Life 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 Eventide Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eventide Healthcare Life has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Eventide Healthcare go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Eventide Healthcare
Assuming the 90 days horizon Mainstay Epoch Global is expected to generate 0.33 times more return on investment than Eventide Healthcare. However, Mainstay Epoch Global is 3.05 times less risky than Eventide Healthcare. It trades about 0.04 of its potential returns per unit of risk. Eventide Healthcare Life is currently generating about -0.07 per unit of risk. If you would invest 2,433 in Mainstay Epoch Global on August 28, 2024 and sell it today you would earn a total of 12.00 from holding Mainstay Epoch Global or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Epoch Global vs. Eventide Healthcare Life
Performance |
| Timeline |
| Mainstay Epoch Global |
| Eventide Healthcare Life |
Mainstay Epoch and Eventide Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Eventide Healthcare
The main advantage of trading using opposite Mainstay Epoch and Eventide Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Eventide Healthcare 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 Eventide Healthcare will offset losses from the drop in Eventide Healthcare's long position.| Mainstay Epoch vs. Eventide Healthcare Life | Mainstay Epoch vs. Health Biotchnology Portfolio | Mainstay Epoch vs. Allianzgi Health Sciences | Mainstay Epoch vs. Fidelity Advisor Health |
| Eventide Healthcare vs. Ab Small Cap | Eventide Healthcare vs. Heartland Value Plus | Eventide Healthcare vs. Ab Discovery Value | Eventide Healthcare vs. Queens Road Small |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |