Correlation Between Bitcoin and Mainstay Epoch

Can any of the company-specific risk be diversified away by investing in both Bitcoin 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 Bitcoin and Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bitcoin and Mainstay Epoch Global, you can compare the effects of market volatilities on Bitcoin 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 Bitcoin with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Mainstay Epoch.

Diversification Opportunities for Bitcoin and Mainstay Epoch

-0.24

Correlation Coefficient

Bitcoin  Mainstay Epoch

Very good diversification

The 3 months correlation between Bitcoin and Mainstay is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin 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 Bitcoin 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 Bitcoin 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 Bitcoin i.e., Bitcoin and Mainstay Epoch go up and down completely randomly.

Pair Corralation between Bitcoin and Mainstay Epoch

Assuming the 90 days trading horizon Bitcoin is expected to generate 3.14 times more return on investment than Mainstay Epoch. However, Bitcoin is 3.14 times more volatile than Mainstay Epoch Global. It trades about 0.17 of its potential returns per unit of risk. Mainstay Epoch Global is currently generating about 0.24 per unit of risk. If you would invest  9,860,693  in Bitcoin on October 24, 2024 and sell it today you would earn a total of  732,107  from holding Bitcoin or generate 7.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	85.71%
Values	Daily Returns

Bitcoin  vs.  Mainstay Epoch Global

Bitcoin

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Bitcoin exhibited solid returns over the last few months and may actually be approaching a breakup point.

Mainstay Epoch Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mainstay Epoch Global has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Bitcoin and Mainstay Epoch

The main advantage of trading using opposite Bitcoin and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin 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.

The idea behind Bitcoin and Mainstay Epoch Global pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.