Correlation Between Mainstay Fiera and T Rowe
Can any of the company-specific risk be diversified away by investing in both Mainstay Fiera and T Rowe 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 T Rowe 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 T Rowe Price, you can compare the effects of market volatilities on Mainstay Fiera and T Rowe 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 T Rowe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Fiera and T Rowe.
Diversification Opportunities for Mainstay Fiera and T Rowe
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and PAMCX is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Fiera Smid and T Rowe Price in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Rowe Price 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 T Rowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Rowe Price has no effect on the direction of Mainstay Fiera i.e., Mainstay Fiera and T Rowe go up and down completely randomly.
Pair Corralation between Mainstay Fiera and T Rowe
Assuming the 90 days horizon Mainstay Fiera Smid is expected to generate 1.2 times more return on investment than T Rowe. However, Mainstay Fiera is 1.2 times more volatile than T Rowe Price. It trades about 0.08 of its potential returns per unit of risk. T Rowe Price is currently generating about 0.07 per unit of risk. If you would invest 1,504 in Mainstay Fiera Smid on September 2, 2024 and sell it today you would earn a total of 316.00 from holding Mainstay Fiera Smid or generate 21.01% 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. T Rowe Price
Performance |
| Timeline |
| Mainstay Fiera Smid |
| T Rowe Price |
Mainstay Fiera and T Rowe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Fiera and T Rowe
The main advantage of trading using opposite Mainstay Fiera and T Rowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Fiera position performs unexpectedly, T Rowe 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 T Rowe will offset losses from the drop in T Rowe's 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 |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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