Correlation Between Mainstay Epoch and Mainstay Growth
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Mainstay Growth 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 Growth 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 Growth Etf, you can compare the effects of market volatilities on Mainstay Epoch and Mainstay Growth 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 Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Mainstay Growth.
Diversification Opportunities for Mainstay Epoch and Mainstay Growth
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Global and Mainstay Growth Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Growth Etf 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 Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Growth Etf has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Mainstay Growth go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Mainstay Growth
Assuming the 90 days horizon Mainstay Epoch is expected to generate 3.17 times less return on investment than Mainstay Growth. But when comparing it to its historical volatility, Mainstay Epoch Global is 1.2 times less risky than Mainstay Growth. It trades about 0.08 of its potential returns per unit of risk. Mainstay Growth Etf is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,453 in Mainstay Growth Etf on August 31, 2024 and sell it today you would earn a total of 43.00 from holding Mainstay Growth Etf or generate 2.96% 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 Growth Etf
Performance |
| Timeline |
| Mainstay Epoch Global |
| Mainstay Growth Etf |
Mainstay Epoch and Mainstay Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Mainstay Growth
The main advantage of trading using opposite Mainstay Epoch and Mainstay Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Mainstay Growth 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 Growth will offset losses from the drop in Mainstay Growth's long position.| Mainstay Epoch vs. The Gabelli Small | Mainstay Epoch vs. American Century Diversified | Mainstay Epoch vs. Jhancock Diversified Macro | Mainstay Epoch vs. Harbor Diversified International |
| Mainstay Growth vs. Franklin Natural Resources | Mainstay Growth vs. Energy Basic Materials | Mainstay Growth vs. Gmo Resources | Mainstay Growth vs. Icon Natural Resources |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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