Correlation Between Adams Diversified and Mainstay Map
Can any of the company-specific risk be diversified away by investing in both Adams Diversified 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 Adams Diversified and Mainstay Map into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adams Diversified Equity and Mainstay Map Equity, you can compare the effects of market volatilities on Adams Diversified 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 Adams Diversified with a short position of Mainstay Map. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adams Diversified and Mainstay Map.
Diversification Opportunities for Adams Diversified and Mainstay Map
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Adams and Mainstay is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Adams Diversified Equity 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 Adams Diversified 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 Adams Diversified Equity 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 Adams Diversified i.e., Adams Diversified and Mainstay Map go up and down completely randomly.
Pair Corralation between Adams Diversified and Mainstay Map
Considering the 90-day investment horizon Adams Diversified Equity is expected to generate 1.18 times more return on investment than Mainstay Map. However, Adams Diversified is 1.18 times more volatile than Mainstay Map Equity. It trades about 0.09 of its potential returns per unit of risk. Mainstay Map Equity is currently generating about 0.03 per unit of risk. If you would invest 1,378 in Adams Diversified Equity on August 24, 2024 and sell it today you would earn a total of 664.00 from holding Adams Diversified Equity or generate 48.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adams Diversified Equity vs. Mainstay Map Equity
Performance |
| Timeline |
| Adams Diversified Equity |
| Mainstay Map Equity |
Adams Diversified and Mainstay Map Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adams Diversified and Mainstay Map
The main advantage of trading using opposite Adams Diversified and Mainstay Map positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adams Diversified 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.| Adams Diversified vs. Tri Continental Closed | Adams Diversified vs. SRH Total Return | Adams Diversified vs. Putnam Municipal Opportunities | Adams Diversified vs. Tortoise Energy Independence |
| Mainstay Map vs. Adams Diversified Equity | Mainstay Map vs. Pimco Diversified Income | Mainstay Map vs. Jhancock Diversified Macro | Mainstay Map vs. Tiaa Cref Lifestyle Conservative |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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