Correlation Between Mainstay New and Mainstay Epoch

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Mainstay New 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 New 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 New York and Mainstay Epoch Equity, you can compare the effects of market volatilities on Mainstay New 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 New with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay New and Mainstay Epoch.

Diversification Opportunities for Mainstay New and Mainstay Epoch

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Mainstay and Mainstay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay New York 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 New 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 New York 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 New i.e., Mainstay New and Mainstay Epoch go up and down completely randomly.

Pair Corralation between Mainstay New and Mainstay Epoch

Assuming the 90 days horizon Mainstay New is expected to generate 4.11 times less return on investment than Mainstay Epoch. But when comparing it to its historical volatility, Mainstay New York is 2.33 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 Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Mainstay New York  vs.  Mainstay Epoch Equity

 Performance 
       Timeline  
Mainstay New York 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Mainstay New York are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Mainstay New is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Mainstay Epoch Equity 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Mainstay Epoch Equity are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Mainstay Epoch is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Mainstay New and Mainstay Epoch Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Mainstay New and Mainstay Epoch

The main advantage of trading using opposite Mainstay New and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay New 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.
The idea behind Mainstay New York and Mainstay Epoch Equity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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.

Other Complementary Tools

Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Money Managers
Screen money managers from public funds and ETFs managed around the world
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm