Correlation Between Mainstay Mackay and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Mainstay Mackay 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 Mackay 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 Mackay New and Mainstay Epoch Equity, you can compare the effects of market volatilities on Mainstay Mackay 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 Mackay with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Mackay and Mainstay Epoch.
Diversification Opportunities for Mainstay Mackay and Mainstay Epoch
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mainstay and Mainstay is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Mackay New and Mainstay Epoch Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Equity and Mainstay Mackay 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 Mackay New 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 Equity has no effect on the direction of Mainstay Mackay i.e., Mainstay Mackay and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Mainstay Mackay and Mainstay Epoch
Assuming the 90 days horizon Mainstay Mackay is expected to generate 3.93 times less return on investment than Mainstay Epoch. But when comparing it to its historical volatility, Mainstay Mackay New is 2.32 times less risky than Mainstay Epoch. It trades about 0.08 of its potential returns per unit of risk. Mainstay Epoch Equity is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,800 in Mainstay Epoch Equity on August 31, 2024 and sell it today you would earn a total of 649.00 from holding Mainstay Epoch Equity or generate 36.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Mackay New vs. Mainstay Epoch Equity
Performance |
| Timeline |
| Mainstay Mackay New |
| Mainstay Epoch Equity |
Mainstay Mackay and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Mackay and Mainstay Epoch
The main advantage of trading using opposite Mainstay Mackay and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Mackay 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 Mackay vs. Goehring Rozencwajg Resources | Mainstay Mackay vs. Fidelity Advisor Energy | Mainstay Mackay vs. Energy Services Fund | Mainstay Mackay vs. Icon Natural Resources |
| Mainstay Epoch vs. Dodge Cox Stock | Mainstay Epoch vs. American Mutual Fund | Mainstay Epoch vs. American Funds American | Mainstay Epoch vs. American Funds American |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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