Correlation Between Mainstay Growth and Eic Value

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

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

Diversification Opportunities for Mainstay Growth and Eic Value

-0.07

Correlation Coefficient

Mainstay Growth  Eic Value

Good diversification

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

Pair Corralation between Mainstay Growth and Eic Value

Assuming the 90 days horizon Mainstay Growth Etf is expected to under-perform the Eic Value. In addition to that, Mainstay Growth is 1.15 times more volatile than Eic Value Fund. It trades about -0.05 of its total potential returns per unit of risk. Eic Value Fund is currently generating about 0.2 per unit of volatility. If you would invest  1,652  in Eic Value Fund on December 19, 2024 and sell it today you would earn a total of  143.00  from holding Eic Value Fund or generate 8.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Mainstay Growth Etf  vs.  Eic Value Fund

Mainstay Growth Etf

Risk-Adjusted Performance

Very Weak

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

Eic Value Fund

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Eic Value Fund are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Eic Value may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Mainstay Growth and Eic Value

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

The idea behind Mainstay Growth Etf and Eic Value Fund 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.