Correlation Between Guidepath(r) Managed and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Guidepath(r) Managed 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 Guidepath(r) Managed and Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidepath Managed Futures and Mainstay Epoch Equity, you can compare the effects of market volatilities on Guidepath(r) Managed 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 Guidepath(r) Managed with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidepath(r) Managed and Mainstay Epoch.
Diversification Opportunities for Guidepath(r) Managed and Mainstay Epoch
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guidepath(r) and Mainstay is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Guidepath Managed Futures 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 Guidepath(r) Managed 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 Guidepath Managed Futures 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 Guidepath(r) Managed i.e., Guidepath(r) Managed and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Guidepath(r) Managed and Mainstay Epoch
Assuming the 90 days horizon Guidepath Managed Futures is expected to under-perform the Mainstay Epoch. In addition to that, Guidepath(r) Managed is 1.21 times more volatile than Mainstay Epoch Equity. It trades about -0.11 of its total potential returns per unit of risk. Mainstay Epoch Equity is currently generating about 0.18 per unit of volatility. If you would invest 2,021 in Mainstay Epoch Equity on September 2, 2024 and sell it today you would earn a total of 310.00 from holding Mainstay Epoch Equity or generate 15.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guidepath Managed Futures vs. Mainstay Epoch Equity
Performance |
| Timeline |
| Guidepath Managed Futures |
| Mainstay Epoch Equity |
Guidepath(r) Managed and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidepath(r) Managed and Mainstay Epoch
The main advantage of trading using opposite Guidepath(r) Managed and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidepath(r) Managed 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.| Guidepath(r) Managed vs. Pimco Income Strategy | Guidepath(r) Managed vs. American Balanced Fund | Guidepath(r) Managed vs. Nuveen Real Asset | Guidepath(r) Managed vs. New Economy Fund |
| Mainstay Epoch vs. Victory Strategic Allocation | Mainstay Epoch vs. Aqr Large Cap | Mainstay Epoch vs. Touchstone Large Cap | Mainstay Epoch vs. T Rowe Price |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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