Correlation Between Fidelity Sai and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai 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 Fidelity Sai and Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Sai Convertible and Mainstay Epoch Equity, you can compare the effects of market volatilities on Fidelity Sai 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 Fidelity Sai with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Mainstay Epoch.
Diversification Opportunities for Fidelity Sai and Mainstay Epoch
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and Mainstay is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible 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 Fidelity Sai 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 Fidelity Sai Convertible 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 Fidelity Sai i.e., Fidelity Sai and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Fidelity Sai and Mainstay Epoch
Assuming the 90 days horizon Fidelity Sai is expected to generate 1.77 times less return on investment than Mainstay Epoch. But when comparing it to its historical volatility, Fidelity Sai Convertible is 4.83 times less risky than Mainstay Epoch. It trades about 0.25 of its potential returns per unit of risk. Mainstay Epoch Equity is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,811 in Mainstay Epoch Equity on August 31, 2024 and sell it today you would earn a total of 598.00 from holding Mainstay Epoch Equity or generate 33.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 64.78% |
| Values | Daily Returns |
Fidelity Sai Convertible vs. Mainstay Epoch Equity
Performance |
| Timeline |
| Fidelity Sai Convertible |
| Mainstay Epoch Equity |
Fidelity Sai and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and Mainstay Epoch
The main advantage of trading using opposite Fidelity Sai and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai 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.| Fidelity Sai vs. Calamos Market Neutral | Fidelity Sai vs. Calamos Market Neutral | Fidelity Sai vs. Aqr Diversified Arbitrage | Fidelity Sai vs. Aqr Diversified Arbitrage |
| Mainstay Epoch vs. The Gamco Global | Mainstay Epoch vs. Absolute Convertible Arbitrage | Mainstay Epoch vs. Calamos Dynamic Convertible | Mainstay Epoch vs. Fidelity Sai 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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