Correlation Between Mainstay Fiera and Mainstay International
Can any of the company-specific risk be diversified away by investing in both Mainstay Fiera and Mainstay 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 Fiera and Mainstay International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Fiera Smid and Mainstay International Opportunities, you can compare the effects of market volatilities on Mainstay Fiera and Mainstay 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 Fiera with a short position of Mainstay International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Fiera and Mainstay International.
Diversification Opportunities for Mainstay Fiera and Mainstay International
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mainstay and Mainstay is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Fiera Smid and Mainstay International Opportu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay International and Mainstay Fiera 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 Fiera Smid are associated (or correlated) with Mainstay International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay International has no effect on the direction of Mainstay Fiera i.e., Mainstay Fiera and Mainstay International go up and down completely randomly.
Pair Corralation between Mainstay Fiera and Mainstay International
Assuming the 90 days horizon Mainstay Fiera is expected to generate 1.47 times less return on investment than Mainstay International. In addition to that, Mainstay Fiera is 1.41 times more volatile than Mainstay International Opportunities. It trades about 0.03 of its total potential returns per unit of risk. Mainstay International Opportunities is currently generating about 0.06 per unit of volatility. If you would invest 623.00 in Mainstay International Opportunities on September 18, 2024 and sell it today you would earn a total of 159.00 from holding Mainstay International Opportunities or generate 25.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 71.37% |
Values | Daily Returns |
Mainstay Fiera Smid vs. Mainstay International Opportu
Performance |
Timeline |
Mainstay Fiera Smid |
Mainstay International |
Mainstay Fiera and Mainstay International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mainstay Fiera and Mainstay International
The main advantage of trading using opposite Mainstay Fiera and Mainstay International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Fiera position performs unexpectedly, Mainstay 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 Mainstay International will offset losses from the drop in Mainstay International's long position.Mainstay Fiera vs. Mainstay High Yield | Mainstay Fiera vs. Mainstay Tax Free | Mainstay Fiera vs. Mainstay Income Builder | Mainstay Fiera vs. Mainstay Large Cap |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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