Correlation Between Aquagold International and Mainstay Balanced
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Mainstay Balanced 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 Balanced 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 Balanced Fund, you can compare the effects of market volatilities on Aquagold International and Mainstay Balanced 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 Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Mainstay Balanced.
Diversification Opportunities for Aquagold International and Mainstay Balanced
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Mainstay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Mainstay Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Balanced 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 Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Balanced has no effect on the direction of Aquagold International i.e., Aquagold International and Mainstay Balanced go up and down completely randomly.
Pair Corralation between Aquagold International and Mainstay Balanced
Given the investment horizon of 90 days Aquagold International is expected to generate 113.92 times more return on investment than Mainstay Balanced. However, Aquagold International is 113.92 times more volatile than Mainstay Balanced Fund. It trades about 0.06 of its potential returns per unit of risk. Mainstay Balanced Fund is currently generating about 0.07 per unit of risk. If you would invest 12.00 in Aquagold International on September 1, 2024 and sell it today you would lose (11.40) from holding Aquagold International or give up 95.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
Aquagold International vs. Mainstay Balanced Fund
Performance |
| Timeline |
| Aquagold International |
| Mainstay Balanced |
Aquagold International and Mainstay Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Mainstay Balanced
The main advantage of trading using opposite Aquagold International and Mainstay Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Mainstay Balanced 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 Balanced will offset losses from the drop in Mainstay Balanced'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 Balanced vs. Sprott Gold Equity | Mainstay Balanced vs. Europac Gold Fund | Mainstay Balanced vs. Goldman Sachs Esg | Mainstay Balanced vs. Great West Goldman Sachs |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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