Correlation Between Fa 529 and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Fa 529 and Mainstay Epoch 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 Fa 529 and Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fa 529 Aggressive and Mainstay Epoch Equity, you can compare the effects of market volatilities on Fa 529 and Mainstay Epoch 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 Fa 529 with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fa 529 and Mainstay Epoch.
Diversification Opportunities for Fa 529 and Mainstay Epoch
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FFCGX and Mainstay is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Fa 529 Aggressive and Mainstay Epoch Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Equity and Fa 529 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 Fa 529 Aggressive are associated (or correlated) with Mainstay Epoch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Epoch Equity has no effect on the direction of Fa 529 i.e., Fa 529 and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Fa 529 and Mainstay Epoch
Assuming the 90 days horizon Fa 529 Aggressive is expected to generate 0.26 times more return on investment than Mainstay Epoch. However, Fa 529 Aggressive is 3.91 times less risky than Mainstay Epoch. It trades about 0.13 of its potential returns per unit of risk. Mainstay Epoch Equity is currently generating about -0.23 per unit of risk. If you would invest 4,025 in Fa 529 Aggressive on September 13, 2024 and sell it today you would earn a total of 51.00 from holding Fa 529 Aggressive or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fa 529 Aggressive vs. Mainstay Epoch Equity
Performance |
| Timeline |
| Fa 529 Aggressive |
| Mainstay Epoch Equity |
Fa 529 and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fa 529 and Mainstay Epoch
The main advantage of trading using opposite Fa 529 and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fa 529 position performs unexpectedly, Mainstay Epoch 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 Epoch will offset losses from the drop in Mainstay Epoch's long position.| Fa 529 vs. Kinetics Market Opportunities | Fa 529 vs. Barings Emerging Markets | Fa 529 vs. Locorr Market Trend | Fa 529 vs. Siit Emerging Markets |
| Mainstay Epoch vs. Mainstay Tax Free | Mainstay Epoch vs. Mainstay Large Cap | Mainstay Epoch vs. Mainstay Large Cap | Mainstay Epoch vs. Mainstay Large 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 Stocks Directory module to find actively traded stocks across global markets.
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