Correlation Between Qs Growth and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Qs Growth 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 Qs Growth and Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qs Growth Fund and Mainstay Epoch Global, you can compare the effects of market volatilities on Qs Growth 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 Qs Growth with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qs Growth and Mainstay Epoch.
Diversification Opportunities for Qs Growth and Mainstay Epoch
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LANIX and Mainstay is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Qs Growth Fund 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 Qs Growth 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 Qs Growth Fund 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 Qs Growth i.e., Qs Growth and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Qs Growth and Mainstay Epoch
Assuming the 90 days horizon Qs Growth is expected to generate 1.07 times less return on investment than Mainstay Epoch. In addition to that, Qs Growth is 1.11 times more volatile than Mainstay Epoch Global. It trades about 0.09 of its total potential returns per unit of risk. Mainstay Epoch Global is currently generating about 0.11 per unit of volatility. If you would invest 1,931 in Mainstay Epoch Global on August 28, 2024 and sell it today you would earn a total of 519.00 from holding Mainstay Epoch Global or generate 26.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qs Growth Fund vs. Mainstay Epoch Global
Performance |
| Timeline |
| Qs Growth Fund |
| Mainstay Epoch Global |
Qs Growth and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qs Growth and Mainstay Epoch
The main advantage of trading using opposite Qs Growth and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qs Growth 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.| Qs Growth vs. Franklin Founding Funds | Qs Growth vs. Franklin Growth Allocation | Qs Growth vs. Franklin Growth Fund | Qs Growth vs. Franklin Growth Opportunities |
| Mainstay Epoch vs. Mainstay High Yield | Mainstay Epoch vs. Mainstay Tax Free | Mainstay Epoch vs. Mainstay Income Builder | 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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