Correlation Between Ab Small and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Ab Small 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 Ab Small and Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Small Cap and Mainstay Epoch Global, you can compare the effects of market volatilities on Ab Small 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 Ab Small with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Small and Mainstay Epoch.
Diversification Opportunities for Ab Small and Mainstay Epoch
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between QUAKX and Mainstay is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Ab Small Cap and Mainstay Epoch Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Global and Ab Small 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 Ab Small Cap 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 Global has no effect on the direction of Ab Small i.e., Ab Small and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Ab Small and Mainstay Epoch
Assuming the 90 days horizon Ab Small Cap is expected to generate 1.64 times more return on investment than Mainstay Epoch. However, Ab Small is 1.64 times more volatile than Mainstay Epoch Global. It trades about 0.11 of its potential returns per unit of risk. Mainstay Epoch Global is currently generating about 0.02 per unit of risk. If you would invest 5,829 in Ab Small Cap on September 12, 2024 and sell it today you would earn a total of 1,165 from holding Ab Small Cap or generate 19.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Small Cap vs. Mainstay Epoch Global
Performance |
| Timeline |
| Ab Small Cap |
| Mainstay Epoch Global |
Ab Small and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Small and Mainstay Epoch
The main advantage of trading using opposite Ab Small and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Small 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.| Ab Small vs. Ab Large Cap | Ab Small vs. Ab Small Cap | Ab Small vs. Ab Small Cap | Ab Small vs. Ab Small Cap |
| Mainstay Epoch vs. Old Westbury Municipal | Mainstay Epoch vs. Ishares Municipal Bond | Mainstay Epoch vs. Transamerica Intermediate Muni | Mainstay Epoch vs. Pace Municipal Fixed |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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