Correlation Between Ultra-short Fixed and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Ultra-short Fixed 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 Ultra-short Fixed and Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ultra Short Fixed Income and Mainstay Epoch Global, you can compare the effects of market volatilities on Ultra-short Fixed 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 Ultra-short Fixed with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultra-short Fixed and Mainstay Epoch.
Diversification Opportunities for Ultra-short Fixed and Mainstay Epoch
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ultra-short and Mainstay is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ultra Short Fixed Income 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 Ultra-short Fixed 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 Ultra Short Fixed Income 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 Ultra-short Fixed i.e., Ultra-short Fixed and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Ultra-short Fixed and Mainstay Epoch
Assuming the 90 days horizon Ultra-short Fixed is expected to generate 4.29 times less return on investment than Mainstay Epoch. But when comparing it to its historical volatility, Ultra Short Fixed Income is 6.64 times less risky than Mainstay Epoch. It trades about 0.24 of its potential returns per unit of risk. Mainstay Epoch Global is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,960 in Mainstay Epoch Global on September 2, 2024 and sell it today you would earn a total of 497.00 from holding Mainstay Epoch Global or generate 25.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ultra Short Fixed Income vs. Mainstay Epoch Global
Performance |
| Timeline |
| Ultra Short Fixed |
| Mainstay Epoch Global |
Ultra-short Fixed and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultra-short Fixed and Mainstay Epoch
The main advantage of trading using opposite Ultra-short Fixed and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultra-short Fixed 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.| Ultra-short Fixed vs. Chartwell Short Duration | Ultra-short Fixed vs. Old Westbury Short Term | Ultra-short Fixed vs. Goldman Sachs Short Term | Ultra-short Fixed vs. Siit Ultra Short |
| Mainstay Epoch vs. Us Vector Equity | Mainstay Epoch vs. Scharf Fund Retail | Mainstay Epoch vs. Ultra Short Fixed Income | Mainstay Epoch vs. The Gabelli Equity |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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