Correlation Between Mainstay Epoch and Gotham Index
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Gotham Index 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 Gotham Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Epoch Equity and Gotham Index Plus, you can compare the effects of market volatilities on Mainstay Epoch and Gotham Index 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 Gotham Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Gotham Index.
Diversification Opportunities for Mainstay Epoch and Gotham Index
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Gotham is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Equity and Gotham Index Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gotham Index Plus 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 Equity are associated (or correlated) with Gotham Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gotham Index Plus has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Gotham Index go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Gotham Index
Assuming the 90 days horizon Mainstay Epoch is expected to generate 3.87 times less return on investment than Gotham Index. But when comparing it to its historical volatility, Mainstay Epoch Equity is 1.52 times less risky than Gotham Index. It trades about 0.04 of its potential returns per unit of risk. Gotham Index Plus is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,126 in Gotham Index Plus on August 28, 2025 and sell it today you would earn a total of 162.00 from holding Gotham Index Plus or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Epoch Equity vs. Gotham Index Plus
Performance |
| Timeline |
| Mainstay Epoch Equity |
| Gotham Index Plus |
Mainstay Epoch and Gotham Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Gotham Index
The main advantage of trading using opposite Mainstay Epoch and Gotham Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Gotham Index 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 Gotham Index will offset losses from the drop in Gotham Index's long position.| Mainstay Epoch vs. Fidelity Series Government | Mainstay Epoch vs. Jpmorgan Government Bond | Mainstay Epoch vs. Franklin Adjustable Government | Mainstay Epoch vs. Aig Government Money |
| Gotham Index vs. Rationalrgn Hedged Equity | Gotham Index vs. Rbc Emerging Markets | Gotham Index vs. Ms Global Fixed | Gotham Index vs. Tax Managed International Equity |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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