Correlation Between Mainstay Epoch and Voya Cbre

Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Voya Cbre 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 Voya Cbre 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 Voya Cbre Global, you can compare the effects of market volatilities on Mainstay Epoch and Voya Cbre 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 Voya Cbre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Voya Cbre.

Diversification Opportunities for Mainstay Epoch and Voya Cbre

0.83

Correlation Coefficient

Mainstay Epoch  Voya Cbre

Very poor diversification

The 3 months correlation between Mainstay and Voya is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Equity and Voya Cbre Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Cbre Global 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 Voya Cbre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Cbre Global has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Voya Cbre go up and down completely randomly.

Pair Corralation between Mainstay Epoch and Voya Cbre

Assuming the 90 days horizon Mainstay Epoch Equity is expected to generate 1.08 times more return on investment than Voya Cbre. However, Mainstay Epoch is 1.08 times more volatile than Voya Cbre Global. It trades about 0.18 of its potential returns per unit of risk. Voya Cbre Global is currently generating about 0.08 per unit of risk. If you would invest  2,089  in Mainstay Epoch Equity on May 2, 2025 and sell it today you would earn a total of  158.00  from holding Mainstay Epoch Equity or generate 7.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.39%
Values	Daily Returns

Mainstay Epoch Equity  vs.  Voya Cbre Global

Mainstay Epoch Equity

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mainstay Epoch Equity are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Mainstay Epoch may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Voya Cbre Global

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Cbre Global are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Voya Cbre is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mainstay Epoch and Voya Cbre

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

The idea behind Mainstay Epoch Equity and Voya Cbre Global 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.