Correlation Between Mainstay Epoch and Mainstay Vertible
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Mainstay Vertible 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 Mainstay Vertible 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 Mainstay Vertible Fund, you can compare the effects of market volatilities on Mainstay Epoch and Mainstay Vertible 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 Mainstay Vertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Mainstay Vertible.
Diversification Opportunities for Mainstay Epoch and Mainstay Vertible
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Global and Mainstay Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Vertible 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 Mainstay Vertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Vertible has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Mainstay Vertible go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Mainstay Vertible
Assuming the 90 days horizon Mainstay Epoch Global is expected to generate 1.26 times more return on investment than Mainstay Vertible. However, Mainstay Epoch is 1.26 times more volatile than Mainstay Vertible Fund. It trades about 0.12 of its potential returns per unit of risk. Mainstay Vertible Fund is currently generating about 0.09 per unit of risk. If you would invest 1,900 in Mainstay Epoch Global on September 1, 2024 and sell it today you would earn a total of 557.00 from holding Mainstay Epoch Global or generate 29.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Epoch Global vs. Mainstay Vertible Fund
Performance |
| Timeline |
| Mainstay Epoch Global |
| Mainstay Vertible |
Mainstay Epoch and Mainstay Vertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Mainstay Vertible
The main advantage of trading using opposite Mainstay Epoch and Mainstay Vertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Mainstay Vertible 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 Mainstay Vertible will offset losses from the drop in Mainstay Vertible's long position.| Mainstay Epoch vs. Pace High Yield | Mainstay Epoch vs. Blackrock High Yield | Mainstay Epoch vs. Prudential Short Duration | Mainstay Epoch vs. Alpine High Yield |
| Mainstay Vertible vs. Rationalpier 88 Convertible | Mainstay Vertible vs. Fidelity Sai Convertible | Mainstay Vertible vs. Harbor Vertible Securities | Mainstay Vertible vs. Calamos Dynamic Convertible |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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