Correlation Between Mainstay Epoch and Siit High
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Siit High 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 Siit High 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 Siit High Yield, you can compare the effects of market volatilities on Mainstay Epoch and Siit High 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 Siit High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Siit High.
Diversification Opportunities for Mainstay Epoch and Siit High
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mainstay and Siit is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Global and Siit High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit High Yield 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 Siit High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit High Yield has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Siit High go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Siit High
Assuming the 90 days horizon Mainstay Epoch Global is expected to generate 1.9 times more return on investment than Siit High. However, Mainstay Epoch is 1.9 times more volatile than Siit High Yield. It trades about 0.15 of its potential returns per unit of risk. Siit High Yield is currently generating about 0.11 per unit of risk. If you would invest 1,975 in Mainstay Epoch Global on September 2, 2024 and sell it today you would earn a total of 477.00 from holding Mainstay Epoch Global or generate 24.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Epoch Global vs. Siit High Yield
Performance |
| Timeline |
| Mainstay Epoch Global |
| Siit High Yield |
Mainstay Epoch and Siit High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Siit High
The main advantage of trading using opposite Mainstay Epoch and Siit High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Siit High 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 Siit High will offset losses from the drop in Siit High's long position.| Mainstay Epoch vs. Mainstay High Yield | Mainstay Epoch vs. Mainstay Tax Free | Mainstay Epoch vs. Mainstay Income Builder | Mainstay Epoch vs. Mainstay Large Cap |
| Siit High vs. Simt Multi Asset Accumulation | Siit High vs. Saat Market Growth | Siit High vs. Simt Real Return | Siit High vs. Simt Small Cap |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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