Correlation Between Mainstay Epoch and Invesco Gold
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Invesco Gold 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 Invesco Gold 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 Invesco Gold Special, you can compare the effects of market volatilities on Mainstay Epoch and Invesco Gold 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 Invesco Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Invesco Gold.
Diversification Opportunities for Mainstay Epoch and Invesco Gold
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mainstay and Invesco is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Small and Invesco Gold Special in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Gold Special 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 Invesco Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Gold Special has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Invesco Gold go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Invesco Gold
Assuming the 90 days horizon Mainstay Epoch is expected to generate 6.11 times less return on investment than Invesco Gold. But when comparing it to its historical volatility, Mainstay Epoch Small is 1.64 times less risky than Invesco Gold. It trades about 0.07 of its potential returns per unit of risk. Invesco Gold Special is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 2,723 in Invesco Gold Special on September 13, 2024 and sell it today you would earn a total of 251.00 from holding Invesco Gold Special or generate 9.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mainstay Epoch Small vs. Invesco Gold Special
Performance |
| Timeline |
| Mainstay Epoch Small |
| Invesco Gold Special |
Mainstay Epoch and Invesco Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Invesco Gold
The main advantage of trading using opposite Mainstay Epoch and Invesco Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Invesco Gold 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 Invesco Gold will offset losses from the drop in Invesco Gold's long position.| Mainstay Epoch vs. Mainstay High Yield | Mainstay Epoch vs. Mainstay Tax Free | Mainstay Epoch vs. Mainstay Income Builder | Mainstay Epoch vs. Mainstay Large Cap |
| Invesco Gold vs. Blackrock Sm Cap | Invesco Gold vs. Sentinel Small Pany | Invesco Gold vs. Wasatch Small Cap | Invesco Gold vs. Small Cap Stock |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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