Correlation Between NYSE Composite and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Mainstay Epoch 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 NYSE Composite and Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Mainstay Epoch Small, you can compare the effects of market volatilities on NYSE Composite and Mainstay Epoch 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 NYSE Composite with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Mainstay Epoch.
Diversification Opportunities for NYSE Composite and Mainstay Epoch
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NYSE and Mainstay is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Mainstay Epoch Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Small and NYSE Composite 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 NYSE Composite are associated (or correlated) with Mainstay Epoch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Epoch Small has no effect on the direction of NYSE Composite i.e., NYSE Composite and Mainstay Epoch go up and down completely randomly.
Pair Corralation between NYSE Composite and Mainstay Epoch
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.18 times less return on investment than Mainstay Epoch. But when comparing it to its historical volatility, NYSE Composite is 1.85 times less risky than Mainstay Epoch. It trades about 0.11 of its potential returns per unit of risk. Mainstay Epoch Small is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,034 in Mainstay Epoch Small on August 31, 2024 and sell it today you would earn a total of 703.00 from holding Mainstay Epoch Small or generate 34.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
NYSE Composite vs. Mainstay Epoch Small
Performance |
| Timeline |
NYSE Composite and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Mainstay Epoch Small
Pair trading matchups for Mainstay Epoch
Pair Trading with NYSE Composite and Mainstay Epoch
The main advantage of trading using opposite NYSE Composite and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Mainstay Epoch 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 Epoch will offset losses from the drop in Mainstay Epoch's long position.| NYSE Composite vs. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
| Mainstay Epoch vs. T Rowe Price | Mainstay Epoch vs. Oklahoma Municipal Fund | Mainstay Epoch vs. Federated Ohio Municipal | Mainstay Epoch vs. The National Tax Free |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |