Correlation Between Ab Global and Mainstay New
Can any of the company-specific risk be diversified away by investing in both Ab Global and Mainstay New 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 Global and Mainstay New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Global Bond and Mainstay New York, you can compare the effects of market volatilities on Ab Global and Mainstay New 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 Global with a short position of Mainstay New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Mainstay New.
Diversification Opportunities for Ab Global and Mainstay New
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ANAYX and Mainstay is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Bond and Mainstay New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay New York and Ab Global 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 Global Bond are associated (or correlated) with Mainstay New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay New York has no effect on the direction of Ab Global i.e., Ab Global and Mainstay New go up and down completely randomly.
Pair Corralation between Ab Global and Mainstay New
Assuming the 90 days horizon Ab Global is expected to generate 1.23 times less return on investment than Mainstay New. But when comparing it to its historical volatility, Ab Global Bond is 1.38 times less risky than Mainstay New. It trades about 0.18 of its potential returns per unit of risk. Mainstay New York is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 963.00 in Mainstay New York on September 1, 2024 and sell it today you would earn a total of 12.00 from holding Mainstay New York or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global Bond vs. Mainstay New York
Performance |
| Timeline |
| Ab Global Bond |
| Mainstay New York |
Ab Global and Mainstay New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Mainstay New
The main advantage of trading using opposite Ab Global and Mainstay New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global position performs unexpectedly, Mainstay New 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 New will offset losses from the drop in Mainstay New's long position.| Ab Global vs. Goldman Sachs Technology | Ab Global vs. Icon Information Technology | Ab Global vs. Goldman Sachs Technology | Ab Global vs. Janus Global Technology |
| Mainstay New vs. Versatile Bond Portfolio | Mainstay New vs. Ab Impact Municipal | Mainstay New vs. Ab Global Bond | Mainstay New vs. Calamos Short Term Bond |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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