Correlation Between Ab Impact and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Ab Impact and Mainstay High 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 High 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 High Yield, you can compare the effects of market volatilities on Ab Impact and Mainstay High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Impact and Mainstay High.
Diversification Opportunities for Ab Impact and Mainstay High
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ABIMX and Mainstay is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Ab Impact Municipal and Mainstay High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay High Yield 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 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay High Yield has no effect on the direction of Ab Impact i.e., Ab Impact and Mainstay High go up and down completely randomly.
Pair Corralation between Ab Impact and Mainstay High
Assuming the 90 days horizon Ab Impact Municipal is expected to generate 0.93 times more return on investment than Mainstay High. However, Ab Impact Municipal is 1.08 times less risky than Mainstay High. It trades about -0.02 of its potential returns per unit of risk. Mainstay High Yield is currently generating about -0.03 per unit of risk. If you would invest 998.00 in Ab Impact Municipal on August 29, 2024 and sell it today you would lose (4.00) from holding Ab Impact Municipal or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Impact Municipal vs. Mainstay High Yield
Performance |
| Timeline |
| Ab Impact Municipal |
| Mainstay High Yield |
Ab Impact and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Impact and Mainstay High
The main advantage of trading using opposite Ab Impact and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Impact position performs unexpectedly, Mainstay High 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 High will offset losses from the drop in Mainstay High's long position.| Ab Impact vs. HUMANA INC | Ab Impact vs. Aquagold International | Ab Impact vs. Barloworld Ltd ADR | Ab Impact vs. Morningstar Unconstrained Allocation |
| Mainstay High vs. Maryland Tax Free Bond | Mainstay High vs. Sterling Capital Short | Mainstay High vs. T Rowe Price | Mainstay High vs. Ab Impact Municipal |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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