Correlation Between Mainstay Epoch and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Angel Oak 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 Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Epoch Capital and Angel Oak Ultrashort, you can compare the effects of market volatilities on Mainstay Epoch and Angel Oak 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 Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Angel Oak.
Diversification Opportunities for Mainstay Epoch and Angel Oak
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mainstay and Angel is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Capital and Angel Oak Ultrashort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Ultrashort 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 Capital are associated (or correlated) with Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Ultrashort has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Angel Oak go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Angel Oak
Assuming the 90 days horizon Mainstay Epoch Capital is expected to generate 6.84 times more return on investment than Angel Oak. However, Mainstay Epoch is 6.84 times more volatile than Angel Oak Ultrashort. It trades about 0.09 of its potential returns per unit of risk. Angel Oak Ultrashort is currently generating about 0.23 per unit of risk. If you would invest 1,233 in Mainstay Epoch Capital on September 2, 2024 and sell it today you would earn a total of 347.00 from holding Mainstay Epoch Capital or generate 28.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Epoch Capital vs. Angel Oak Ultrashort
Performance |
| Timeline |
| Mainstay Epoch Capital |
| Angel Oak Ultrashort |
Mainstay Epoch and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Angel Oak
The main advantage of trading using opposite Mainstay Epoch and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Mainstay Epoch vs. Mainstay Large Cap | Mainstay Epoch vs. Mainstay Large Cap | Mainstay Epoch vs. Mainstay Large Cap | Mainstay Epoch vs. Mainstay Large Cap |
| Angel Oak vs. Ab Bond Inflation | Angel Oak vs. Ab Bond Inflation | Angel Oak vs. Western Asset Inflation | Angel Oak vs. Oklahoma College Savings |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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