Correlation Between Mainstay Epoch and Texton Property

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

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

Diversification Opportunities for Mainstay Epoch and Texton Property

0.0

Correlation Coefficient

Mainstay Epoch  Texton Property

Pay attention - limited upside

The 3 months correlation between Mainstay and Texton is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Small and Texton Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Texton Property 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 Small are associated (or correlated) with Texton Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Texton Property has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Texton Property go up and down completely randomly.

Pair Corralation between Mainstay Epoch and Texton Property

If you would invest  14.00  in Texton Property on December 21, 2024 and sell it today you would earn a total of  0.00  from holding Texton Property or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Mainstay Epoch Small  vs.  Texton Property

Mainstay Epoch Small

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mainstay Epoch Small 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.

Texton Property

Risk-Adjusted Performance

Very Weak

Over the last 90 days Texton Property has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable basic indicators, Texton Property is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Mainstay Epoch and Texton Property

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

The idea behind Mainstay Epoch Small and Texton Property 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.