Correlation Between Guggenheim Risk and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Guggenheim Risk 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 Guggenheim Risk and Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guggenheim Risk Managed and Mainstay Epoch Global, you can compare the effects of market volatilities on Guggenheim Risk 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 Guggenheim Risk with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Risk and Mainstay Epoch.
Diversification Opportunities for Guggenheim Risk and Mainstay Epoch
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guggenheim and Mainstay is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Risk Managed and Mainstay Epoch Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Global and Guggenheim Risk 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 Guggenheim Risk Managed 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 Global has no effect on the direction of Guggenheim Risk i.e., Guggenheim Risk and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Guggenheim Risk and Mainstay Epoch
Assuming the 90 days horizon Guggenheim Risk Managed is expected to generate 0.41 times more return on investment than Mainstay Epoch. However, Guggenheim Risk Managed is 2.41 times less risky than Mainstay Epoch. It trades about -0.02 of its potential returns per unit of risk. Mainstay Epoch Global is currently generating about -0.21 per unit of risk. If you would invest 3,408 in Guggenheim Risk Managed on September 13, 2024 and sell it today you would lose (12.00) from holding Guggenheim Risk Managed or give up 0.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Risk Managed vs. Mainstay Epoch Global
Performance |
| Timeline |
| Guggenheim Risk Managed |
| Mainstay Epoch Global |
Guggenheim Risk and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Risk and Mainstay Epoch
The main advantage of trading using opposite Guggenheim Risk and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Risk 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.| Guggenheim Risk vs. Guggenheim Risk Managed | Guggenheim Risk vs. Guggenheim Risk Managed | Guggenheim Risk vs. Guggenheim Risk Managed | Guggenheim Risk vs. Lazard Global Listed |
| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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