Correlation Between Mainstay Fiera and Mainstay Short
Can any of the company-specific risk be diversified away by investing in both Mainstay Fiera and Mainstay Short 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 Mainstay Short 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 Mainstay Short Duration, you can compare the effects of market volatilities on Mainstay Fiera and Mainstay Short 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 Mainstay Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Fiera and Mainstay Short.
Diversification Opportunities for Mainstay Fiera and Mainstay Short
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Fiera Smid and Mainstay Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Short Duration 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 Mainstay Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Short Duration has no effect on the direction of Mainstay Fiera i.e., Mainstay Fiera and Mainstay Short go up and down completely randomly.
Pair Corralation between Mainstay Fiera and Mainstay Short
Assuming the 90 days horizon Mainstay Fiera Smid is expected to generate 9.75 times more return on investment than Mainstay Short. However, Mainstay Fiera is 9.75 times more volatile than Mainstay Short Duration. It trades about 0.06 of its potential returns per unit of risk. Mainstay Short Duration is currently generating about 0.23 per unit of risk. If you would invest 1,679 in Mainstay Fiera Smid on August 29, 2024 and sell it today you would earn a total of 227.00 from holding Mainstay Fiera Smid or generate 13.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Fiera Smid vs. Mainstay Short Duration
Performance |
| Timeline |
| Mainstay Fiera Smid |
| Mainstay Short Duration |
Mainstay Fiera and Mainstay Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Fiera and Mainstay Short
The main advantage of trading using opposite Mainstay Fiera and Mainstay Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Fiera position performs unexpectedly, Mainstay Short 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 Short will offset losses from the drop in Mainstay Short's long position.| Mainstay Fiera vs. Gamco Global Telecommunications | Mainstay Fiera vs. T Rowe Price | Mainstay Fiera vs. Transamerica Intermediate Muni | Mainstay Fiera vs. Intermediate Term Tax Free Bond |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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