Correlation Between Mainstay Fiera and Invesco Gold
Can any of the company-specific risk be diversified away by investing in both Mainstay Fiera and Invesco Gold 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 Invesco Gold 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 Invesco Gold Special, you can compare the effects of market volatilities on Mainstay Fiera and Invesco Gold 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 Invesco Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Fiera and Invesco Gold.
Diversification Opportunities for Mainstay Fiera and Invesco Gold
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mainstay and Invesco is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Fiera Smid and Invesco Gold Special in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Gold Special 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 Invesco Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Gold Special has no effect on the direction of Mainstay Fiera i.e., Mainstay Fiera and Invesco Gold go up and down completely randomly.
Pair Corralation between Mainstay Fiera and Invesco Gold
Assuming the 90 days horizon Mainstay Fiera Smid is expected to generate 0.55 times more return on investment than Invesco Gold. However, Mainstay Fiera Smid is 1.81 times less risky than Invesco Gold. It trades about 0.22 of its potential returns per unit of risk. Invesco Gold Special is currently generating about 0.08 per unit of risk. If you would invest 1,597 in Mainstay Fiera Smid on September 3, 2024 and sell it today you would earn a total of 223.00 from holding Mainstay Fiera Smid or generate 13.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Fiera Smid vs. Invesco Gold Special
Performance |
| Timeline |
| Mainstay Fiera Smid |
| Invesco Gold Special |
Mainstay Fiera and Invesco Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Fiera and Invesco Gold
The main advantage of trading using opposite Mainstay Fiera and Invesco Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Fiera position performs unexpectedly, Invesco Gold 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 Invesco Gold will offset losses from the drop in Invesco Gold's long position.| Mainstay Fiera vs. Invesco Gold Special | Mainstay Fiera vs. Short Precious Metals | Mainstay Fiera vs. Global Gold Fund | Mainstay Fiera vs. Fidelity Advisor Gold |
| Invesco Gold vs. Goldman Sachs Clean | Invesco Gold vs. Gabelli Gold Fund | Invesco Gold vs. Precious Metals And | Invesco Gold vs. James Balanced Golden |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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