Correlation Between Mainstay Cushing and The Gold
Can any of the company-specific risk be diversified away by investing in both Mainstay Cushing and The Gold 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 Cushing and The Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Cushing Mlp and The Gold Bullion, you can compare the effects of market volatilities on Mainstay Cushing and The Gold 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 Cushing with a short position of The Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Cushing and The Gold.
Diversification Opportunities for Mainstay Cushing and The Gold
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mainstay and The is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Cushing Mlp and The Gold Bullion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Bullion and Mainstay Cushing 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 Cushing Mlp are associated (or correlated) with The Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Bullion has no effect on the direction of Mainstay Cushing i.e., Mainstay Cushing and The Gold go up and down completely randomly.
Pair Corralation between Mainstay Cushing and The Gold
Assuming the 90 days horizon Mainstay Cushing Mlp is expected to generate 1.08 times more return on investment than The Gold. However, Mainstay Cushing is 1.08 times more volatile than The Gold Bullion. It trades about 0.12 of its potential returns per unit of risk. The Gold Bullion is currently generating about 0.08 per unit of risk. If you would invest 721.00 in Mainstay Cushing Mlp on October 26, 2024 and sell it today you would earn a total of 520.00 from holding Mainstay Cushing Mlp or generate 72.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Mainstay Cushing Mlp vs. The Gold Bullion
Performance |
Timeline |
Mainstay Cushing Mlp |
Gold Bullion |
Mainstay Cushing and The Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mainstay Cushing and The Gold
The main advantage of trading using opposite Mainstay Cushing and The Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Cushing position performs unexpectedly, The Gold 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 The Gold will offset losses from the drop in The Gold's long position.Mainstay Cushing vs. Neuberger Berman Income | Mainstay Cushing vs. Virtus High Yield | Mainstay Cushing vs. Prudential High Yield | Mainstay Cushing vs. Transamerica High Yield |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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