Correlation Between Mainstay Epoch and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Old Westbury 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 Old Westbury 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 Old Westbury Municipal, you can compare the effects of market volatilities on Mainstay Epoch and Old Westbury 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 Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Old Westbury.
Diversification Opportunities for Mainstay Epoch and Old Westbury
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mainstay and Old is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Global and Old Westbury Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury Municipal 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 Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury Municipal has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Old Westbury go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Old Westbury
Assuming the 90 days horizon Mainstay Epoch Global is expected to under-perform the Old Westbury. In addition to that, Mainstay Epoch is 15.35 times more volatile than Old Westbury Municipal. It trades about -0.24 of its total potential returns per unit of risk. Old Westbury Municipal is currently generating about 0.51 per unit of volatility. If you would invest 1,150 in Old Westbury Municipal on September 12, 2024 and sell it today you would earn a total of 12.00 from holding Old Westbury Municipal or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Epoch Global vs. Old Westbury Municipal
Performance |
| Timeline |
| Mainstay Epoch Global |
| Old Westbury Municipal |
Mainstay Epoch and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Old Westbury
The main advantage of trading using opposite Mainstay Epoch and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Old Westbury 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 Old Westbury will offset losses from the drop in Old Westbury's long position.| Mainstay Epoch vs. Old Westbury Municipal | Mainstay Epoch vs. Ishares Municipal Bond | Mainstay Epoch vs. Transamerica Intermediate Muni | Mainstay Epoch vs. Pace Municipal Fixed |
| Old Westbury vs. Royce Global Financial | Old Westbury vs. Gabelli Global Financial | Old Westbury vs. Mesirow Financial Small | Old Westbury vs. Financials Ultrasector Profund |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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