Correlation Between Mai Managed and Vy Clarion

Can any of the company-specific risk be diversified away by investing in both Mai Managed and Vy Clarion 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 Mai Managed and Vy Clarion into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mai Managed Volatility and Vy Clarion Real, you can compare the effects of market volatilities on Mai Managed and Vy Clarion 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 Mai Managed with a short position of Vy Clarion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mai Managed and Vy Clarion.

Diversification Opportunities for Mai Managed and Vy Clarion

-0.23

Correlation Coefficient

Mai Managed  Vy Clarion

Very good diversification

The 3 months correlation between Mai and ICRPX is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Mai Managed Volatility and Vy Clarion Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Clarion Real and Mai Managed 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 Mai Managed Volatility are associated (or correlated) with Vy Clarion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Clarion Real has no effect on the direction of Mai Managed i.e., Mai Managed and Vy Clarion go up and down completely randomly.

Pair Corralation between Mai Managed and Vy Clarion

Assuming the 90 days horizon Mai Managed Volatility is expected to generate 0.3 times more return on investment than Vy Clarion. However, Mai Managed Volatility is 3.36 times less risky than Vy Clarion. It trades about 0.12 of its potential returns per unit of risk. Vy Clarion Real is currently generating about 0.01 per unit of risk. If you would invest  1,604  in Mai Managed Volatility on October 23, 2024 and sell it today you would earn a total of  11.00  from holding Mai Managed Volatility or generate 0.69% return on investment over 90 days.

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

Mai Managed Volatility  vs.  Vy Clarion Real

Mai Managed Volatility

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mai Managed Volatility are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Mai Managed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Vy Clarion Real

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vy Clarion Real 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.

Pair Trading with Mai Managed and Vy Clarion

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

The idea behind Mai Managed Volatility and Vy Clarion Real 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.