Correlation Between Ab High and Mainstay Nerstone
Can any of the company-specific risk be diversified away by investing in both Ab High and Mainstay Nerstone 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 High and Mainstay Nerstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab High Income and Mainstay Nerstone Growth, you can compare the effects of market volatilities on Ab High and Mainstay Nerstone 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 High with a short position of Mainstay Nerstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab High and Mainstay Nerstone.
Diversification Opportunities for Ab High and Mainstay Nerstone
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AGDAX and Mainstay is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ab High Income and Mainstay Nerstone Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Nerstone Growth and Ab High 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 High Income are associated (or correlated) with Mainstay Nerstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Nerstone Growth has no effect on the direction of Ab High i.e., Ab High and Mainstay Nerstone go up and down completely randomly.
Pair Corralation between Ab High and Mainstay Nerstone
Assuming the 90 days horizon Ab High is expected to generate 2.43 times less return on investment than Mainstay Nerstone. But when comparing it to its historical volatility, Ab High Income is 6.01 times less risky than Mainstay Nerstone. It trades about 0.23 of its potential returns per unit of risk. Mainstay Nerstone Growth is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 4,591 in Mainstay Nerstone Growth on September 12, 2024 and sell it today you would earn a total of 284.00 from holding Mainstay Nerstone Growth or generate 6.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Ab High Income vs. Mainstay Nerstone Growth
Performance |
| Timeline |
| Ab High Income |
| Mainstay Nerstone Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Ab High and Mainstay Nerstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab High and Mainstay Nerstone
The main advantage of trading using opposite Ab High and Mainstay Nerstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab High position performs unexpectedly, Mainstay Nerstone 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 Nerstone will offset losses from the drop in Mainstay Nerstone's long position.| Ab High vs. Absolute Convertible Arbitrage | Ab High vs. Gabelli Convertible And | Ab High vs. Advent Claymore Convertible | Ab High vs. Allianzgi Convertible Income |
| Mainstay Nerstone vs. Omni Small Cap Value | Mainstay Nerstone vs. Eic Value Fund | Mainstay Nerstone vs. Issachar Fund Class | Mainstay Nerstone vs. Volumetric Fund Volumetric |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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