Correlation Between Mainstay Epoch and Marsico International

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Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Marsico International 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 Marsico International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Epoch International and Marsico International Opportunities, you can compare the effects of market volatilities on Mainstay Epoch and Marsico International 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 Marsico International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Marsico International.

Diversification Opportunities for Mainstay Epoch and Marsico International

0.07
  Correlation Coefficient

Significant diversification

The 3 months correlation between Mainstay and Marsico is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch International and Marsico International Opportun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marsico International 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 International are associated (or correlated) with Marsico International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marsico International has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Marsico International go up and down completely randomly.

Pair Corralation between Mainstay Epoch and Marsico International

Assuming the 90 days horizon Mainstay Epoch International is expected to under-perform the Marsico International. But the mutual fund apears to be less risky and, when comparing its historical volatility, Mainstay Epoch International is 1.82 times less risky than Marsico International. The mutual fund trades about -0.31 of its potential returns per unit of risk. The Marsico International Opportunities is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest  2,569  in Marsico International Opportunities on October 11, 2024 and sell it today you would lose (101.00) from holding Marsico International Opportunities or give up 3.93% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Mainstay Epoch International  vs.  Marsico International Opportun

 Performance 
       Timeline  
Mainstay Epoch Inter 

Risk-Adjusted Performance

0 of 100

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

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Marsico International Opportunities has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Marsico International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Mainstay Epoch and Marsico International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Mainstay Epoch and Marsico International

The main advantage of trading using opposite Mainstay Epoch and Marsico International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Marsico International 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 Marsico International will offset losses from the drop in Marsico International's long position.
The idea behind Mainstay Epoch International and Marsico International Opportunities 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.

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