Correlation Between Ab Impact and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Ab Impact and Mainstay Large 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 Ab Impact and Mainstay Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Impact Municipal and Mainstay Large Cap, you can compare the effects of market volatilities on Ab Impact and Mainstay Large 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 Ab Impact with a short position of Mainstay Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Impact and Mainstay Large.
Diversification Opportunities for Ab Impact and Mainstay Large
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ABIMX and Mainstay is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ab Impact Municipal and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap and Ab Impact 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 Ab Impact Municipal are associated (or correlated) with Mainstay Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of Ab Impact i.e., Ab Impact and Mainstay Large go up and down completely randomly.
Pair Corralation between Ab Impact and Mainstay Large
Assuming the 90 days horizon Ab Impact is expected to generate 3.42 times less return on investment than Mainstay Large. But when comparing it to its historical volatility, Ab Impact Municipal is 3.69 times less risky than Mainstay Large. It trades about 0.09 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 950.00 in Mainstay Large Cap on September 2, 2024 and sell it today you would earn a total of 375.00 from holding Mainstay Large Cap or generate 39.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Impact Municipal vs. Mainstay Large Cap
Performance |
| Timeline |
| Ab Impact Municipal |
| Mainstay Large Cap |
Ab Impact and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Impact and Mainstay Large
The main advantage of trading using opposite Ab Impact and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Impact position performs unexpectedly, Mainstay Large 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 Large will offset losses from the drop in Mainstay Large's long position.| Ab Impact vs. Angel Oak Ultrashort | Ab Impact vs. Ab Select Longshort | Ab Impact vs. Chartwell Short Duration | Ab Impact vs. Touchstone Ultra Short |
| Mainstay Large vs. Mainstay Tax Free | Mainstay Large vs. Mainstay Large Cap | Mainstay Large vs. Mainstay Large Cap | Mainstay Large vs. Mainstay Large Cap |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |