Correlation Between Vy Goldman and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Vy Goldman 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 Vy Goldman and Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vy Goldman Sachs and Mainstay Epoch Equity, you can compare the effects of market volatilities on Vy Goldman 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 Vy Goldman with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vy Goldman and Mainstay Epoch.
Diversification Opportunities for Vy Goldman and Mainstay Epoch
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VGSBX and Mainstay is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Vy Goldman Sachs 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 Vy Goldman 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 Vy Goldman Sachs 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 Vy Goldman i.e., Vy Goldman and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Vy Goldman and Mainstay Epoch
Assuming the 90 days horizon Vy Goldman Sachs is expected to under-perform the Mainstay Epoch. But the mutual fund apears to be less risky and, when comparing its historical volatility, Vy Goldman Sachs is 1.64 times less risky than Mainstay Epoch. The mutual fund trades about -0.16 of its potential returns per unit of risk. The Mainstay Epoch Equity is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2,249 in Mainstay Epoch Equity on August 29, 2024 and sell it today you would earn a total of 80.00 from holding Mainstay Epoch Equity or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vy Goldman Sachs vs. Mainstay Epoch Equity
Performance |
| Timeline |
| Vy Goldman Sachs |
| Mainstay Epoch Equity |
Vy Goldman and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vy Goldman and Mainstay Epoch
The main advantage of trading using opposite Vy Goldman and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vy Goldman 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.| Vy Goldman vs. California Bond Fund | Vy Goldman vs. Astor Longshort Fund | Vy Goldman vs. Transamerica Emerging Markets | Vy Goldman vs. Barings Active Short |
| Mainstay Epoch vs. Vy Goldman Sachs | Mainstay Epoch vs. Gold Portfolio Fidelity | Mainstay Epoch vs. Europac Gold Fund | Mainstay Epoch vs. Franklin Gold Precious |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |