Correlation Between Mainstay Epoch and Strategic Allocation:
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Strategic Allocation: 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 Strategic Allocation: into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Epoch International and Strategic Allocation Aggressive, you can compare the effects of market volatilities on Mainstay Epoch and Strategic Allocation: 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 Strategic Allocation:. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Strategic Allocation:.
Diversification Opportunities for Mainstay Epoch and Strategic Allocation:
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mainstay and Strategic is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch International and Strategic Allocation Aggressiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Allocation: 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 International are associated (or correlated) with Strategic Allocation:. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Allocation: has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Strategic Allocation: go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Strategic Allocation:
Assuming the 90 days horizon Mainstay Epoch is expected to generate 2.41 times less return on investment than Strategic Allocation:. In addition to that, Mainstay Epoch is 1.22 times more volatile than Strategic Allocation Aggressive. It trades about 0.03 of its total potential returns per unit of risk. Strategic Allocation Aggressive is currently generating about 0.09 per unit of volatility. If you would invest 691.00 in Strategic Allocation Aggressive on September 3, 2024 and sell it today you would earn a total of 189.00 from holding Strategic Allocation Aggressive or generate 27.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Epoch International vs. Strategic Allocation Aggressiv
Performance |
| Timeline |
| Mainstay Epoch Inter |
| Strategic Allocation: |
Mainstay Epoch and Strategic Allocation: Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Strategic Allocation:
The main advantage of trading using opposite Mainstay Epoch and Strategic Allocation: positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Strategic Allocation: 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 Strategic Allocation: will offset losses from the drop in Strategic Allocation:'s long position.| Mainstay Epoch vs. Franklin Natural Resources | Mainstay Epoch vs. Energy Basic Materials | Mainstay Epoch vs. Icon Natural Resources | Mainstay Epoch vs. World Energy Fund |
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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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