Correlation Between Eic Value and Mainstay Cushing

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

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

Diversification Opportunities for Eic Value and Mainstay Cushing

0.81

Correlation Coefficient

Eic Value  Mainstay Cushing

Very poor diversification

The 3 months correlation between Eic and Mainstay is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund and Mainstay Cushing Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Cushing Mlp and Eic Value 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 Eic Value Fund are associated (or correlated) with Mainstay Cushing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Cushing Mlp has no effect on the direction of Eic Value i.e., Eic Value and Mainstay Cushing go up and down completely randomly.

Pair Corralation between Eic Value and Mainstay Cushing

Assuming the 90 days horizon Eic Value Fund is expected to generate 0.42 times more return on investment than Mainstay Cushing. However, Eic Value Fund is 2.36 times less risky than Mainstay Cushing. It trades about -0.19 of its potential returns per unit of risk. Mainstay Cushing Mlp is currently generating about -0.13 per unit of risk. If you would invest  1,734  in Eic Value Fund on September 19, 2024 and sell it today you would lose (36.00) from holding Eic Value Fund or give up 2.08% of portfolio value over 90 days.

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

Eic Value Fund  vs.  Mainstay Cushing Mlp

Eic Value Fund

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eic Value Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Eic Value is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Mainstay Cushing Mlp

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mainstay Cushing Mlp are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Mainstay Cushing may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Eic Value and Mainstay Cushing

The main advantage of trading using opposite Eic Value and Mainstay Cushing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value position performs unexpectedly, Mainstay Cushing 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 Cushing will offset losses from the drop in Mainstay Cushing's long position.

The idea behind Eic Value Fund and Mainstay Cushing Mlp 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.