Correlation Between FrontView REIT, and Mainstay Epoch

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

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

Diversification Opportunities for FrontView REIT, and Mainstay Epoch

0.36

Correlation Coefficient

FrontView REIT,  Mainstay Epoch

Weak diversification

The 3 months correlation between FrontView and Mainstay is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, 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 FrontView REIT, 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 FrontView REIT, 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 FrontView REIT, i.e., FrontView REIT, and Mainstay Epoch go up and down completely randomly.

Pair Corralation between FrontView REIT, and Mainstay Epoch

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the Mainstay Epoch. But the stock apears to be less risky and, when comparing its historical volatility, FrontView REIT, is 1.08 times less risky than Mainstay Epoch. The stock trades about -0.11 of its potential returns per unit of risk. The Mainstay Epoch Small is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  2,542  in Mainstay Epoch Small on September 23, 2024 and sell it today you would earn a total of  146.00  from holding Mainstay Epoch Small or generate 5.74% return on investment over 90 days.

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

FrontView REIT,  vs.  Mainstay Epoch Small

FrontView REIT,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FrontView REIT, has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, FrontView REIT, is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Mainstay Epoch Small

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Mainstay Epoch Small are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Mainstay Epoch is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with FrontView REIT, and Mainstay Epoch

The main advantage of trading using opposite FrontView REIT, and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FrontView REIT, 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 FrontView REIT, 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.