Correlation Between Mainstay Income and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Mainstay Income 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 Income 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 Income Builder and Mainstay Epoch International, you can compare the effects of market volatilities on Mainstay Income 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 Income with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Income and Mainstay Epoch.
Diversification Opportunities for Mainstay Income and Mainstay Epoch
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mainstay and Mainstay is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Income Builder and Mainstay Epoch International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Inter and Mainstay Income 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 Income Builder 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 Inter has no effect on the direction of Mainstay Income i.e., Mainstay Income and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Mainstay Income and Mainstay Epoch
Assuming the 90 days horizon Mainstay Income Builder is expected to generate 0.61 times more return on investment than Mainstay Epoch. However, Mainstay Income Builder is 1.64 times less risky than Mainstay Epoch. It trades about 0.26 of its potential returns per unit of risk. Mainstay Epoch International is currently generating about -0.13 per unit of risk. If you would invest 2,077 in Mainstay Income Builder on September 1, 2024 and sell it today you would earn a total of 54.00 from holding Mainstay Income Builder or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Income Builder vs. Mainstay Epoch International
Performance |
| Timeline |
| Mainstay Income Builder |
| Mainstay Epoch Inter |
Mainstay Income and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Income and Mainstay Epoch
The main advantage of trading using opposite Mainstay Income and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Income 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 Income vs. Siit Emerging Markets | Mainstay Income vs. Harbor Diversified International | Mainstay Income vs. Transamerica Emerging Markets | Mainstay Income vs. Rbc Emerging Markets |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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