Correlation Between Mainstay Epoch and Mainstay Equity
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Mainstay Equity 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 Equity 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 Equity Etf, you can compare the effects of market volatilities on Mainstay Epoch and Mainstay Equity 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 Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Mainstay Equity.
Diversification Opportunities for Mainstay Epoch and Mainstay Equity
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Small and Mainstay Equity Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Equity 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 Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Equity Etf has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Mainstay Equity go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Mainstay Equity
Assuming the 90 days horizon Mainstay Epoch Small is expected to generate 2.11 times more return on investment than Mainstay Equity. However, Mainstay Epoch is 2.11 times more volatile than Mainstay Equity Etf. It trades about 0.26 of its potential returns per unit of risk. Mainstay Equity Etf is currently generating about 0.09 per unit of risk. If you would invest 1,842 in Mainstay Epoch Small on August 24, 2024 and sell it today you would earn a total of 180.00 from holding Mainstay Epoch Small or generate 9.77% 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 Equity Etf
Performance |
| Timeline |
| Mainstay Epoch Small |
| Mainstay Equity Etf |
Mainstay Epoch and Mainstay Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Mainstay Equity
The main advantage of trading using opposite Mainstay Epoch and Mainstay Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Mainstay Equity 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 Equity will offset losses from the drop in Mainstay Equity's long position.The idea behind Mainstay Epoch Small and Mainstay Equity Etf 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.| Mainstay Equity vs. Saat E Market | Mainstay Equity vs. Saat Aggressive Strategy | Mainstay Equity vs. HUMANA INC | Mainstay Equity vs. Aquagold International |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |