Correlation Between Eagle Mlp and Mainstay Epoch

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

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

Diversification Opportunities for Eagle Mlp and Mainstay Epoch

0.19

Correlation Coefficient

Eagle Mlp  Mainstay Epoch

Average diversification

The 3 months correlation between Eagle and Mainstay is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Mlp Strategy and Mainstay Epoch Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Small and Eagle Mlp 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 Eagle Mlp Strategy 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 Small has no effect on the direction of Eagle Mlp i.e., Eagle Mlp and Mainstay Epoch go up and down completely randomly.

Pair Corralation between Eagle Mlp and Mainstay Epoch

Assuming the 90 days horizon Eagle Mlp Strategy is expected to generate 1.13 times more return on investment than Mainstay Epoch. However, Eagle Mlp is 1.13 times more volatile than Mainstay Epoch Small. It trades about 0.12 of its potential returns per unit of risk. Mainstay Epoch Small is currently generating about -0.11 per unit of risk. If you would invest  1,040  in Eagle Mlp Strategy on December 21, 2024 and sell it today you would earn a total of  93.00  from holding Eagle Mlp Strategy or generate 8.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Eagle Mlp Strategy  vs.  Mainstay Epoch Small

Eagle Mlp Strategy

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Eagle Mlp Strategy are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Eagle Mlp may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Mainstay Epoch Small

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mainstay Epoch Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's fundamental 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 Eagle Mlp and Mainstay Epoch

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

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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.