Correlation Between Mainstay Fiera and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Mainstay Fiera and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Mainstay Fiera and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Fiera and Dow Jones.
Diversification Opportunities for Mainstay Fiera and Dow Jones
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Dow is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Fiera Smid and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Mainstay Fiera i.e., Mainstay Fiera and Dow Jones go up and down completely randomly.
Pair Corralation between Mainstay Fiera and Dow Jones
Assuming the 90 days horizon Mainstay Fiera Smid is expected to generate 1.29 times more return on investment than Dow Jones. However, Mainstay Fiera is 1.29 times more volatile than Dow Jones Industrial. It trades about 0.35 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.26 per unit of risk. If you would invest 1,665 in Mainstay Fiera Smid on August 28, 2024 and sell it today you would earn a total of 167.00 from holding Mainstay Fiera Smid or generate 10.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Fiera Smid vs. Dow Jones Industrial
Performance |
| Timeline |
Mainstay Fiera and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Mainstay Fiera Smid
Pair trading matchups for Mainstay Fiera
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Mainstay Fiera and Dow Jones
The main advantage of trading using opposite Mainstay Fiera and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Fiera position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Mainstay Fiera vs. Mainstay High Yield | Mainstay Fiera vs. Mainstay Tax Free | Mainstay Fiera vs. Mainstay Income Builder | Mainstay Fiera vs. Mainstay Large Cap |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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