Correlation Between Mainstay Epoch and Mainstay Income
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Mainstay Income 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 Mainstay Epoch and Mainstay Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Epoch Global and Mainstay Income Builder, you can compare the effects of market volatilities on Mainstay Epoch and Mainstay Income 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 Mainstay Epoch with a short position of Mainstay Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Mainstay Income.
Diversification Opportunities for Mainstay Epoch and Mainstay Income
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mainstay and Mainstay is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Global and Mainstay Income Builder in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Income Builder and Mainstay Epoch 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 Mainstay Epoch Global are associated (or correlated) with Mainstay Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Income Builder has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Mainstay Income go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Mainstay Income
Assuming the 90 days horizon Mainstay Epoch is expected to generate 1.52 times less return on investment than Mainstay Income. In addition to that, Mainstay Epoch is 1.33 times more volatile than Mainstay Income Builder. It trades about 0.09 of its total potential returns per unit of risk. Mainstay Income Builder is currently generating about 0.19 per unit of volatility. If you would invest 2,043 in Mainstay Income Builder on December 21, 2024 and sell it today you would earn a total of 81.00 from holding Mainstay Income Builder or generate 3.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 66.67% |
Values | Daily Returns |
Mainstay Epoch Global vs. Mainstay Income Builder
Performance |
Timeline |
Mainstay Epoch Global |
Mainstay Income Builder |
Risk-Adjusted Performance
Good
Weak | Strong |
Mainstay Epoch and Mainstay Income Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mainstay Epoch and Mainstay Income
The main advantage of trading using opposite Mainstay Epoch and Mainstay Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Mainstay Income 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 Income will offset losses from the drop in Mainstay Income's long position.Mainstay Epoch vs. Chartwell Short Duration | Mainstay Epoch vs. Fundvantage Trust | Mainstay Epoch vs. Aqr Risk Balanced Modities | Mainstay Epoch vs. Gmo High Yield |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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