Correlation Between Mainstay Epoch and Ab High
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Ab High 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 Ab High 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 Ab High Income, you can compare the effects of market volatilities on Mainstay Epoch and Ab High 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 Ab High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Ab High.
Diversification Opportunities for Mainstay Epoch and Ab High
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mainstay and AGDAX is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch International and Ab High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab High Income 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 Ab High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab High Income has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Ab High go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Ab High
Assuming the 90 days horizon Mainstay Epoch International is expected to under-perform the Ab High. In addition to that, Mainstay Epoch is 4.46 times more volatile than Ab High Income. It trades about -0.05 of its total potential returns per unit of risk. Ab High Income is currently generating about 0.22 per unit of volatility. If you would invest 669.00 in Ab High Income on September 3, 2024 and sell it today you would earn a total of 36.00 from holding Ab High Income or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Epoch International vs. Ab High Income
Performance |
| Timeline |
| Mainstay Epoch Inter |
| Ab High Income |
Mainstay Epoch and Ab High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Ab High
The main advantage of trading using opposite Mainstay Epoch and Ab High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Ab High 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 Ab High will offset losses from the drop in Ab High'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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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