Correlation Between Aquagold International and Mainstay Nerstone
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Mainstay Nerstone 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 Aquagold International and Mainstay Nerstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Mainstay Nerstone Growth, you can compare the effects of market volatilities on Aquagold International and Mainstay Nerstone 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 Aquagold International with a short position of Mainstay Nerstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Mainstay Nerstone.
Diversification Opportunities for Aquagold International and Mainstay Nerstone
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aquagold and Mainstay is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Mainstay Nerstone Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Nerstone Growth and Aquagold International 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 Aquagold International are associated (or correlated) with Mainstay Nerstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Nerstone Growth has no effect on the direction of Aquagold International i.e., Aquagold International and Mainstay Nerstone go up and down completely randomly.
Pair Corralation between Aquagold International and Mainstay Nerstone
Given the investment horizon of 90 days Aquagold International is expected to under-perform the Mainstay Nerstone. In addition to that, Aquagold International is 11.05 times more volatile than Mainstay Nerstone Growth. It trades about -0.21 of its total potential returns per unit of risk. Mainstay Nerstone Growth is currently generating about -0.12 per unit of volatility. If you would invest 4,787 in Mainstay Nerstone Growth on November 28, 2024 and sell it today you would lose (120.00) from holding Mainstay Nerstone Growth or give up 2.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aquagold International vs. Mainstay Nerstone Growth
Performance |
| Timeline |
| Aquagold International |
| Mainstay Nerstone Growth |
Aquagold International and Mainstay Nerstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Mainstay Nerstone
The main advantage of trading using opposite Aquagold International and Mainstay Nerstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Mainstay Nerstone 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 Nerstone will offset losses from the drop in Mainstay Nerstone's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Mainstay Nerstone vs. Rbc Impact Bond | Mainstay Nerstone vs. Artisan High Income | Mainstay Nerstone vs. Intermediate Bond Fund | Mainstay Nerstone vs. Versatile Bond Portfolio |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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