Correlation Between Alger Health and Mainstay Conservative
Can any of the company-specific risk be diversified away by investing in both Alger Health and Mainstay Conservative 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 Alger Health and Mainstay Conservative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alger Health Sciences and Mainstay Conservative Allocation, you can compare the effects of market volatilities on Alger Health and Mainstay Conservative 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 Alger Health with a short position of Mainstay Conservative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Health and Mainstay Conservative.
Diversification Opportunities for Alger Health and Mainstay Conservative
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alger and Mainstay is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Alger Health Sciences and Mainstay Conservative Allocati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Conservative and Alger Health 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 Alger Health Sciences are associated (or correlated) with Mainstay Conservative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Conservative has no effect on the direction of Alger Health i.e., Alger Health and Mainstay Conservative go up and down completely randomly.
Pair Corralation between Alger Health and Mainstay Conservative
If you would invest 1,124 in Mainstay Conservative Allocation on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Mainstay Conservative Allocation or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.97% |
| Values | Daily Returns |
Alger Health Sciences vs. Mainstay Conservative Allocati
Performance |
| Timeline |
| Alger Health Sciences |
| Mainstay Conservative |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alger Health and Mainstay Conservative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alger Health and Mainstay Conservative
The main advantage of trading using opposite Alger Health and Mainstay Conservative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alger Health position performs unexpectedly, Mainstay Conservative 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 Conservative will offset losses from the drop in Mainstay Conservative's long position.| Alger Health vs. Western Assets Emerging | Alger Health vs. Commodities Strategy Fund | Alger Health vs. Embark Commodity Strategy | Alger Health vs. Barings Emerging Markets |
| Mainstay Conservative vs. Locorr Dynamic Equity | Mainstay Conservative vs. T Rowe Price | Mainstay Conservative vs. Doubleline Core Fixed | Mainstay Conservative vs. Artisan Select Equity |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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