Correlation Between Mainstay Epoch and Fundamental Large
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Fundamental Large 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 Fundamental Large 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 Fundamental Large Cap, you can compare the effects of market volatilities on Mainstay Epoch and Fundamental Large 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 Fundamental Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Fundamental Large.
Diversification Opportunities for Mainstay Epoch and Fundamental Large
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mainstay and Fundamental is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Global and Fundamental Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundamental Large Cap 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 Fundamental Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundamental Large Cap has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Fundamental Large go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Fundamental Large
Assuming the 90 days horizon Mainstay Epoch Global is expected to under-perform the Fundamental Large. In addition to that, Mainstay Epoch is 1.39 times more volatile than Fundamental Large Cap. It trades about -0.1 of its total potential returns per unit of risk. Fundamental Large Cap is currently generating about 0.21 per unit of volatility. If you would invest 7,652 in Fundamental Large Cap on September 12, 2024 and sell it today you would earn a total of 732.00 from holding Fundamental Large Cap or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Mainstay Epoch Global vs. Fundamental Large Cap
Performance |
| Timeline |
| Mainstay Epoch Global |
| Fundamental Large Cap |
Mainstay Epoch and Fundamental Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Fundamental Large
The main advantage of trading using opposite Mainstay Epoch and Fundamental Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Fundamental Large 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 Fundamental Large will offset losses from the drop in Fundamental Large's long position.| Mainstay Epoch vs. Aig Government Money | Mainstay Epoch vs. Ab Government Exchange | Mainstay Epoch vs. Schwab Treasury Money | Mainstay Epoch vs. Hewitt Money Market |
| Fundamental Large vs. Cref Money Market | Fundamental Large vs. Chestnut Street Exchange | Fundamental Large vs. Ubs Money Series | Fundamental Large vs. Schwab Treasury Money |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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