Correlation Between Mainstay Convertible and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Mainstay Convertible 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 Mainstay Convertible and Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Vertible Fund and Mainstay Epoch Capital, you can compare the effects of market volatilities on Mainstay Convertible 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 Mainstay Convertible with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Convertible and Mainstay Epoch.
Diversification Opportunities for Mainstay Convertible and Mainstay Epoch
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Vertible Fund and Mainstay Epoch Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Capital and Mainstay Convertible 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 Vertible 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 Capital has no effect on the direction of Mainstay Convertible i.e., Mainstay Convertible and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Mainstay Convertible and Mainstay Epoch
Assuming the 90 days horizon Mainstay Vertible Fund is expected to generate 0.6 times more return on investment than Mainstay Epoch. However, Mainstay Vertible Fund is 1.66 times less risky than Mainstay Epoch. It trades about 0.32 of its potential returns per unit of risk. Mainstay Epoch Capital is currently generating about 0.08 per unit of risk. If you would invest 1,941 in Mainstay Vertible Fund on August 30, 2024 and sell it today you would earn a total of 64.00 from holding Mainstay Vertible Fund or generate 3.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Vertible Fund vs. Mainstay Epoch Capital
Performance |
| Timeline |
| Mainstay Convertible |
| Mainstay Epoch Capital |
Mainstay Convertible and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Convertible and Mainstay Epoch
The main advantage of trading using opposite Mainstay Convertible and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Convertible 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.| Mainstay Convertible vs. Mainstay High Yield | Mainstay Convertible vs. Mainstay Income Builder | Mainstay Convertible vs. Mainstay Sp 500 | Mainstay Convertible vs. Mainstay Large Cap |
| Mainstay Epoch vs. Artisan Emerging Markets | Mainstay Epoch vs. Touchstone Sands Capital | Mainstay Epoch vs. Ab Bond Inflation | Mainstay Epoch vs. Dodge Cox Emerging |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |