Correlation Between Mainstay Epoch and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Mainstay Mackay 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 Mackay 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 Mackay Strategic, you can compare the effects of market volatilities on Mainstay Epoch and Mainstay Mackay 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 Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Mainstay Mackay.
Diversification Opportunities for Mainstay Epoch and Mainstay Mackay
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mainstay and Mainstay is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Small and Mainstay Mackay Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mackay Strategic 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 Mackay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Mackay Strategic has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Mainstay Mackay
Assuming the 90 days horizon Mainstay Epoch Small is expected to generate 6.96 times more return on investment than Mainstay Mackay. However, Mainstay Epoch is 6.96 times more volatile than Mainstay Mackay Strategic. It trades about 0.34 of its potential returns per unit of risk. Mainstay Mackay Strategic is currently generating about 0.18 per unit of risk. If you would invest 2,334 in Mainstay Epoch Small on September 1, 2024 and sell it today you would earn a total of 305.00 from holding Mainstay Epoch Small or generate 13.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Epoch Small vs. Mainstay Mackay Strategic
Performance |
| Timeline |
| Mainstay Epoch Small |
| Mainstay Mackay Strategic |
Mainstay Epoch and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Mainstay Mackay
The main advantage of trading using opposite Mainstay Epoch and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Mainstay Mackay 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 Mackay will offset losses from the drop in Mainstay Mackay's long position.| Mainstay Epoch vs. Science Technology Fund | Mainstay Epoch vs. Dreyfus Technology Growth | Mainstay Epoch vs. Goldman Sachs Technology | Mainstay Epoch vs. Allianzgi Technology Fund |
| Mainstay Mackay vs. Mainstay Tax Free | Mainstay Mackay vs. Mainstay Large Cap | Mainstay Mackay vs. Mainstay Large Cap | Mainstay Mackay 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |