Correlation Between Mainstay New and Mainstay
Can any of the company-specific risk be diversified away by investing in both Mainstay New and Mainstay 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 New and Mainstay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay New York and Mainstay Sp 500, you can compare the effects of market volatilities on Mainstay New and Mainstay 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 New with a short position of Mainstay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay New and Mainstay.
Diversification Opportunities for Mainstay New and Mainstay
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mainstay and Mainstay is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay New York and Mainstay Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Sp 500 and Mainstay New 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 New York are associated (or correlated) with Mainstay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Sp 500 has no effect on the direction of Mainstay New i.e., Mainstay New and Mainstay go up and down completely randomly.
Pair Corralation between Mainstay New and Mainstay
Assuming the 90 days horizon Mainstay New York is expected to under-perform the Mainstay. But the mutual fund apears to be less risky and, when comparing its historical volatility, Mainstay New York is 3.34 times less risky than Mainstay. The mutual fund trades about 0.0 of its potential returns per unit of risk. The Mainstay Sp 500 is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 6,667 in Mainstay Sp 500 on November 18, 2024 and sell it today you would lose (1.00) from holding Mainstay Sp 500 or give up 0.01% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Mainstay New York vs. Mainstay Sp 500
Performance |
Timeline |
Mainstay New York |
Mainstay Sp 500 |
Mainstay New and Mainstay Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mainstay New and Mainstay
The main advantage of trading using opposite Mainstay New and Mainstay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay New position performs unexpectedly, Mainstay 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 will offset losses from the drop in Mainstay's long position.Mainstay New vs. Pender Real Estate | ||
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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