Correlation Between Global Gold and Mainstay Fiera
Can any of the company-specific risk be diversified away by investing in both Global Gold and Mainstay Fiera 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 Global Gold and Mainstay Fiera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Gold Fund and Mainstay Fiera Smid, you can compare the effects of market volatilities on Global Gold and Mainstay Fiera 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 Global Gold with a short position of Mainstay Fiera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Gold and Mainstay Fiera.
Diversification Opportunities for Global Gold and Mainstay Fiera
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between GLOBAL and Mainstay is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Global Gold Fund and Mainstay Fiera Smid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Fiera Smid and Global Gold 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 Global Gold Fund are associated (or correlated) with Mainstay Fiera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Fiera Smid has no effect on the direction of Global Gold i.e., Global Gold and Mainstay Fiera go up and down completely randomly.
Pair Corralation between Global Gold and Mainstay Fiera
Assuming the 90 days horizon Global Gold Fund is expected to generate 1.68 times more return on investment than Mainstay Fiera. However, Global Gold is 1.68 times more volatile than Mainstay Fiera Smid. It trades about 0.04 of its potential returns per unit of risk. Mainstay Fiera Smid is currently generating about 0.05 per unit of risk. If you would invest 1,011 in Global Gold Fund on September 4, 2024 and sell it today you would earn a total of 317.00 from holding Global Gold Fund or generate 31.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 69.7% |
| Values | Daily Returns |
Global Gold Fund vs. Mainstay Fiera Smid
Performance |
| Timeline |
| Global Gold Fund |
| Mainstay Fiera Smid |
Global Gold and Mainstay Fiera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Gold and Mainstay Fiera
The main advantage of trading using opposite Global Gold and Mainstay Fiera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Gold position performs unexpectedly, Mainstay Fiera 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 Fiera will offset losses from the drop in Mainstay Fiera's long position.| Global Gold vs. Putnam Convertible Incm Gwth | Global Gold vs. Rationalpier 88 Convertible | Global Gold vs. Advent Claymore Convertible | Global Gold vs. Gabelli Convertible And |
| Mainstay Fiera vs. Pace Smallmedium Growth | Mainstay Fiera vs. Artisan Small Cap | Mainstay Fiera vs. Tfa Alphagen Growth | Mainstay Fiera vs. Small Pany Growth |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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