Correlation Between Mainstay Convertible and Ridgeworth Seix

Can any of the company-specific risk be diversified away by investing in both Mainstay Convertible and Ridgeworth Seix 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 Ridgeworth Seix 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 Ridgeworth Seix Floating, you can compare the effects of market volatilities on Mainstay Convertible and Ridgeworth Seix 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 Ridgeworth Seix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Convertible and Ridgeworth Seix.

Diversification Opportunities for Mainstay Convertible and Ridgeworth Seix

0.0

Correlation Coefficient

Mainstay Convertible  Ridgeworth Seix

Pay attention - limited upside

The 3 months correlation between Mainstay and RIDGEWORTH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Vertible Fund and Ridgeworth Seix Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ridgeworth Seix Floating 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 Ridgeworth Seix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ridgeworth Seix Floating has no effect on the direction of Mainstay Convertible i.e., Mainstay Convertible and Ridgeworth Seix go up and down completely randomly.

Pair Corralation between Mainstay Convertible and Ridgeworth Seix

Assuming the 90 days horizon Mainstay Vertible Fund is expected to generate 1.22 times more return on investment than Ridgeworth Seix. However, Mainstay Convertible is 1.22 times more volatile than Ridgeworth Seix Floating. It trades about 0.19 of its potential returns per unit of risk. Ridgeworth Seix Floating is currently generating about 0.21 per unit of risk. If you would invest  1,876  in Mainstay Vertible Fund on October 23, 2024 and sell it today you would earn a total of  26.00  from holding Mainstay Vertible Fund or generate 1.39% return on investment over 90 days.

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

Mainstay Vertible Fund  vs.  Ridgeworth Seix Floating

Mainstay Convertible

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Mainstay Vertible Fund are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. 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.

Ridgeworth Seix Floating

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ridgeworth Seix Floating are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental drivers, Ridgeworth Seix 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 Ridgeworth Seix

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

The idea behind Mainstay Vertible Fund and Ridgeworth Seix Floating 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.