Correlation Between Mainstay Epoch and Mainstay Moderate
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Mainstay Moderate 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 Moderate 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 Moderate Etf, you can compare the effects of market volatilities on Mainstay Epoch and Mainstay Moderate 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 Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Mainstay Moderate.
Diversification Opportunities for Mainstay Epoch and Mainstay Moderate
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Small and Mainstay Moderate Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Moderate Etf 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 Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Moderate Etf has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Mainstay Moderate go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Mainstay Moderate
Assuming the 90 days horizon Mainstay Epoch Small is expected to generate 3.34 times more return on investment than Mainstay Moderate. However, Mainstay Epoch is 3.34 times more volatile than Mainstay Moderate Etf. It trades about 0.26 of its potential returns per unit of risk. Mainstay Moderate Etf is currently generating about 0.08 per unit of risk. If you would invest 2,414 in Mainstay Epoch Small on August 24, 2024 and sell it today you would earn a total of 238.00 from holding Mainstay Epoch Small or generate 9.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mainstay Epoch Small vs. Mainstay Moderate Etf
Performance |
| Timeline |
| Mainstay Epoch Small |
| Mainstay Moderate Etf |
Mainstay Epoch and Mainstay Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Mainstay Moderate
The main advantage of trading using opposite Mainstay Epoch and Mainstay Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Mainstay Moderate 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 Moderate will offset losses from the drop in Mainstay Moderate's long position.| Mainstay Epoch vs. Mainstay Sp 500 | Mainstay Epoch vs. Mainstay Balanced Fund | Mainstay Epoch vs. Mainstay Balanced Fund |
| Mainstay Moderate vs. Us Government Securities | Mainstay Moderate vs. John Hancock Government | Mainstay Moderate vs. Blackrock Government Bond | Mainstay Moderate vs. Invesco Government Fund |
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.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| CEOs Directory Screen CEOs from public companies around the world |