Correlation Between Mainstay Fiera and Gamco Global
Can any of the company-specific risk be diversified away by investing in both Mainstay Fiera and Gamco Global 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 Mainstay Fiera and Gamco Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Fiera Smid and Gamco Global Telecommunications, you can compare the effects of market volatilities on Mainstay Fiera and Gamco Global 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 Mainstay Fiera with a short position of Gamco Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Fiera and Gamco Global.
Diversification Opportunities for Mainstay Fiera and Gamco Global
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Gamco is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Fiera Smid and Gamco Global Telecommunication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamco Global Telecom and Mainstay Fiera 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 Mainstay Fiera Smid are associated (or correlated) with Gamco Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamco Global Telecom has no effect on the direction of Mainstay Fiera i.e., Mainstay Fiera and Gamco Global go up and down completely randomly.
Pair Corralation between Mainstay Fiera and Gamco Global
Assuming the 90 days horizon Mainstay Fiera is expected to generate 1.52 times less return on investment than Gamco Global. In addition to that, Mainstay Fiera is 1.24 times more volatile than Gamco Global Telecommunications. It trades about 0.05 of its total potential returns per unit of risk. Gamco Global Telecommunications is currently generating about 0.1 per unit of volatility. If you would invest 1,573 in Gamco Global Telecommunications on September 3, 2024 and sell it today you would earn a total of 776.00 from holding Gamco Global Telecommunications or generate 49.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 69.49% |
| Values | Daily Returns |
Mainstay Fiera Smid vs. Gamco Global Telecommunication
Performance |
| Timeline |
| Mainstay Fiera Smid |
| Gamco Global Telecom |
Mainstay Fiera and Gamco Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Fiera and Gamco Global
The main advantage of trading using opposite Mainstay Fiera and Gamco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Fiera position performs unexpectedly, Gamco Global 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 Gamco Global will offset losses from the drop in Gamco Global's long position.| Mainstay Fiera vs. Gamco Global Telecommunications | Mainstay Fiera vs. Franklin High Yield | Mainstay Fiera vs. Limited Term Tax | Mainstay Fiera vs. Alliancebernstein National Municipal |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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