Correlation Between Harding Loevner and Mainstay Cushing

Can any of the company-specific risk be diversified away by investing in both Harding Loevner and Mainstay Cushing 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 Harding Loevner and Mainstay Cushing into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Harding Loevner Global and Mainstay Cushing Mlp, you can compare the effects of market volatilities on Harding Loevner and Mainstay Cushing 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 Harding Loevner with a short position of Mainstay Cushing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harding Loevner and Mainstay Cushing.

Diversification Opportunities for Harding Loevner and Mainstay Cushing

-0.29

Correlation Coefficient

Harding Loevner  Mainstay Cushing

Very good diversification

The 3 months correlation between Harding and Mainstay is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Harding Loevner Global and Mainstay Cushing Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Cushing Mlp and Harding Loevner 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 Harding Loevner Global are associated (or correlated) with Mainstay Cushing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Cushing Mlp has no effect on the direction of Harding Loevner i.e., Harding Loevner and Mainstay Cushing go up and down completely randomly.

Pair Corralation between Harding Loevner and Mainstay Cushing

Assuming the 90 days horizon Harding Loevner is expected to generate 24.87 times less return on investment than Mainstay Cushing. In addition to that, Harding Loevner is 1.41 times more volatile than Mainstay Cushing Mlp. It trades about 0.0 of its total potential returns per unit of risk. Mainstay Cushing Mlp is currently generating about 0.12 per unit of volatility. If you would invest  731.00  in Mainstay Cushing Mlp on October 24, 2024 and sell it today you would earn a total of  510.00  from holding Mainstay Cushing Mlp or generate 69.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Harding Loevner Global  vs.  Mainstay Cushing Mlp

Harding Loevner Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Harding Loevner Global has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Mainstay Cushing Mlp

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mainstay Cushing Mlp are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Mainstay Cushing showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Harding Loevner and Mainstay Cushing

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

The idea behind Harding Loevner Global and Mainstay Cushing Mlp 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.