Correlation Between Mainstay Epoch and Mainstay Convertible
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Mainstay Convertible 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 Mainstay Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Epoch Small and Mainstay Vertible Fund, you can compare the effects of market volatilities on Mainstay Epoch and Mainstay Convertible 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 Mainstay Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Mainstay Convertible.
Diversification Opportunities for Mainstay Epoch and Mainstay Convertible
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Small and Mainstay Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Convertible 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 Small are associated (or correlated) with Mainstay Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Convertible has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Mainstay Convertible go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Mainstay Convertible
Assuming the 90 days horizon Mainstay Epoch Small is expected to generate 3.68 times more return on investment than Mainstay Convertible. However, Mainstay Epoch is 3.68 times more volatile than Mainstay Vertible Fund. It trades about 0.31 of its potential returns per unit of risk. Mainstay Vertible Fund is currently generating about 0.32 per unit of risk. If you would invest 2,345 in Mainstay Epoch Small on August 30, 2024 and sell it today you would earn a total of 284.00 from holding Mainstay Epoch Small or generate 12.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Epoch Small vs. Mainstay Vertible Fund
Performance |
| Timeline |
| Mainstay Epoch Small |
| Mainstay Convertible |
Mainstay Epoch and Mainstay Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Mainstay Convertible
The main advantage of trading using opposite Mainstay Epoch and Mainstay Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Mainstay Convertible 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 Convertible will offset losses from the drop in Mainstay Convertible's long position.| Mainstay Epoch vs. California Bond Fund | Mainstay Epoch vs. Multisector Bond Sma | Mainstay Epoch vs. Ms Global Fixed | Mainstay Epoch vs. Touchstone Premium Yield |
| Mainstay Convertible vs. Mainstay High Yield | Mainstay Convertible vs. Mainstay Income Builder | Mainstay Convertible vs. Mainstay Sp 500 | Mainstay Convertible 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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