Correlation Between Allianzgi Technology and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Allianzgi Technology 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 Allianzgi Technology and Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Technology Fund and Mainstay Epoch Equity, you can compare the effects of market volatilities on Allianzgi Technology 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 Allianzgi Technology with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Technology and Mainstay Epoch.
Diversification Opportunities for Allianzgi Technology and Mainstay Epoch
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Allianzgi and Mainstay is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Technology Fund and Mainstay Epoch Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Equity and Allianzgi Technology 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 Allianzgi Technology Fund 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 Equity has no effect on the direction of Allianzgi Technology i.e., Allianzgi Technology and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Allianzgi Technology and Mainstay Epoch
Assuming the 90 days horizon Allianzgi Technology is expected to generate 1.21 times less return on investment than Mainstay Epoch. In addition to that, Allianzgi Technology is 2.72 times more volatile than Mainstay Epoch Equity. It trades about 0.08 of its total potential returns per unit of risk. Mainstay Epoch Equity is currently generating about 0.27 per unit of volatility. If you would invest 2,088 in Mainstay Epoch Equity on November 3, 2024 and sell it today you would earn a total of 76.00 from holding Mainstay Epoch Equity or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Allianzgi Technology Fund vs. Mainstay Epoch Equity
Performance |
| Timeline |
| Allianzgi Technology |
| Mainstay Epoch Equity |
Allianzgi Technology and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Technology and Mainstay Epoch
The main advantage of trading using opposite Allianzgi Technology and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Technology 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.| Allianzgi Technology vs. Heartland Value Plus | Allianzgi Technology vs. William Blair Small | Allianzgi Technology vs. Mutual Of America | Allianzgi Technology vs. Applied Finance Explorer |
| Mainstay Epoch vs. Fidelity Sai Inflationfocused | Mainstay Epoch vs. Guggenheim Managed Futures | Mainstay Epoch vs. Asg Managed Futures | Mainstay Epoch vs. Atac Inflation Rotation |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| 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 | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |