Correlation Between Internet Ultrasector and Mainstay International

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

By analyzing existing cross correlation between Internet Ultrasector Profund and Mainstay International Equity, you can compare the effects of market volatilities on Internet Ultrasector 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 Internet Ultrasector with a short position of Mainstay International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Internet Ultrasector and Mainstay International.

Diversification Opportunities for Internet Ultrasector and Mainstay International

0.0

Correlation Coefficient

Internet Ultrasector  Mainstay International

Pay attention - limited upside

The 3 months correlation between Internet and Mainstay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Internet Ultrasector Profund and Mainstay International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay International and Internet Ultrasector 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 Internet Ultrasector Profund 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 Internet Ultrasector i.e., Internet Ultrasector and Mainstay International go up and down completely randomly.

Pair Corralation between Internet Ultrasector and Mainstay International

If you would invest (100.00) in Mainstay International Equity on December 22, 2024 and sell it today you would earn a total of  100.00  from holding Mainstay International Equity or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Internet Ultrasector Profund  vs.  Mainstay International Equity

Internet Ultrasector

Risk-Adjusted Performance

Very Weak

Over the last 90 days Internet Ultrasector Profund 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 April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Mainstay International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mainstay International Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Mainstay International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Internet Ultrasector and Mainstay International

The main advantage of trading using opposite Internet Ultrasector and Mainstay International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Internet Ultrasector 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.

The idea behind Internet Ultrasector Profund and Mainstay International Equity 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.