Correlation Between Stellar and Mainstay Map

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Can any of the company-specific risk be diversified away by investing in both Stellar and Mainstay Map 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 Stellar and Mainstay Map into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stellar and Mainstay Map Equity, you can compare the effects of market volatilities on Stellar and Mainstay Map 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 Stellar with a short position of Mainstay Map. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stellar and Mainstay Map.

Diversification Opportunities for Stellar and Mainstay Map

-0.13
  Correlation Coefficient

Good diversification

The 3 months correlation between Stellar and Mainstay is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Stellar and Mainstay Map Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Map Equity and Stellar 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 Stellar are associated (or correlated) with Mainstay Map. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Map Equity has no effect on the direction of Stellar i.e., Stellar and Mainstay Map go up and down completely randomly.

Pair Corralation between Stellar and Mainstay Map

Assuming the 90 days trading horizon Stellar is expected to generate 10.22 times more return on investment than Mainstay Map. However, Stellar is 10.22 times more volatile than Mainstay Map Equity. It trades about 0.03 of its potential returns per unit of risk. Mainstay Map Equity is currently generating about -0.22 per unit of risk. If you would invest  44.00  in Stellar on October 9, 2024 and sell it today you would earn a total of  0.00  from holding Stellar or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.24%
ValuesDaily Returns

Stellar  vs.  Mainstay Map Equity

 Performance 
       Timeline  
Stellar 

Risk-Adjusted Performance

20 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Stellar are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady primary indicators, Stellar exhibited solid returns over the last few months and may actually be approaching a breakup point.
Mainstay Map Equity 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Mainstay Map Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Stellar and Mainstay Map Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Stellar and Mainstay Map

The main advantage of trading using opposite Stellar and Mainstay Map positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stellar position performs unexpectedly, Mainstay Map 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 Map will offset losses from the drop in Mainstay Map's long position.
The idea behind Stellar and Mainstay Map 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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