Correlation Between Mainstay Epoch and Mainstay
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Mainstay 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 Mainstay 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 Mainstay Sp 500, you can compare the effects of market volatilities on Mainstay Epoch and Mainstay 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 Mainstay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Mainstay.
Diversification Opportunities for Mainstay Epoch and Mainstay
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mainstay and Mainstay is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch International and Mainstay Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Sp 500 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 Mainstay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Sp 500 has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Mainstay go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Mainstay
Assuming the 90 days horizon Mainstay Epoch International is expected to under-perform the Mainstay. But the mutual fund apears to be less risky and, when comparing its historical volatility, Mainstay Epoch International is 1.26 times less risky than Mainstay. The mutual fund trades about -0.31 of its potential returns per unit of risk. The Mainstay Sp 500 is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 6,475 in Mainstay Sp 500 on August 29, 2024 and sell it today you would earn a total of 199.00 from holding Mainstay Sp 500 or generate 3.07% 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. Mainstay Sp 500
Performance |
| Timeline |
| Mainstay Epoch Inter |
| Mainstay Sp 500 |
Mainstay Epoch and Mainstay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Mainstay
The main advantage of trading using opposite Mainstay Epoch and Mainstay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Mainstay 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 will offset losses from the drop in Mainstay's long position.| Mainstay Epoch vs. Blackrock Sm Cap | Mainstay Epoch vs. Wasatch Small Cap | Mainstay Epoch vs. Tax Managed Mid Small | Mainstay Epoch vs. Huber Capital Diversified |
| Mainstay vs. Vanguard Total Stock | Mainstay vs. Vanguard 500 Index | Mainstay vs. Vanguard Total Stock | Mainstay vs. Vanguard Total Stock |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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