Correlation Between Mainstay Convertible and Pioneer International

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

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

Diversification Opportunities for Mainstay Convertible and Pioneer International

0.46

Correlation Coefficient

Mainstay Convertible  Pioneer International

Very weak diversification

The 3 months correlation between Mainstay and Pioneer is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Vertible Fund and Pioneer International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneer International and Mainstay Convertible 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 Vertible Fund are associated (or correlated) with Pioneer International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneer International has no effect on the direction of Mainstay Convertible i.e., Mainstay Convertible and Pioneer International go up and down completely randomly.

Pair Corralation between Mainstay Convertible and Pioneer International

If you would invest  2,257  in Pioneer International Equity on October 25, 2024 and sell it today you would earn a total of  387.00  from holding Pioneer International Equity or generate 17.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	0.2%
Values	Daily Returns

Mainstay Vertible Fund  vs.  Pioneer International Equity

Mainstay Convertible

Risk-Adjusted Performance

0 of 100

Weak

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

Pioneer International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pioneer International Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward-looking signals, Pioneer 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 Mainstay Convertible and Pioneer International

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

The idea behind Mainstay Vertible Fund and Pioneer 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.

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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.