Correlation Between Mainstay Epoch and Calvert Global
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Calvert Global 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 Calvert Global 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 Calvert Global Energy, you can compare the effects of market volatilities on Mainstay Epoch and Calvert Global 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 Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Calvert Global.
Diversification Opportunities for Mainstay Epoch and Calvert Global
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and Calvert is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch International and Calvert Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Energy 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 Calvert Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Global Energy has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Calvert Global go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Calvert Global
Assuming the 90 days horizon Mainstay Epoch International is expected to under-perform the Calvert Global. In addition to that, Mainstay Epoch is 1.06 times more volatile than Calvert Global Energy. It trades about -0.01 of its total potential returns per unit of risk. Calvert Global Energy is currently generating about 0.12 per unit of volatility. If you would invest 1,091 in Calvert Global Energy on September 13, 2024 and sell it today you would earn a total of 15.00 from holding Calvert Global Energy or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Epoch International vs. Calvert Global Energy
Performance |
| Timeline |
| Mainstay Epoch Inter |
| Calvert Global Energy |
Mainstay Epoch and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Calvert Global
The main advantage of trading using opposite Mainstay Epoch and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Calvert Global 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 Calvert Global will offset losses from the drop in Calvert Global's long position.| Mainstay Epoch vs. Mainstay High Yield | Mainstay Epoch vs. Mainstay Tax Free | Mainstay Epoch vs. Mainstay Income Builder | Mainstay Epoch vs. Mainstay Large Cap |
| Calvert Global vs. Ab Global Risk | Calvert Global vs. Lgm Risk Managed | Calvert Global vs. Western Asset High | Calvert Global vs. Ab Global Risk |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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