Correlation Between Ab Global and Mainstay Map
Can any of the company-specific risk be diversified away by investing in both Ab Global and Mainstay Map 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 Ab Global and Mainstay Map into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Global Real and Mainstay Map Equity, you can compare the effects of market volatilities on Ab Global and Mainstay Map 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 Ab Global with a short position of Mainstay Map. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Mainstay Map.
Diversification Opportunities for Ab Global and Mainstay Map
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ARECX and Mainstay is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Real and Mainstay Map Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Map Equity and Ab Global 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 Ab Global Real are associated (or correlated) with Mainstay Map. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Map Equity has no effect on the direction of Ab Global i.e., Ab Global and Mainstay Map go up and down completely randomly.
Pair Corralation between Ab Global and Mainstay Map
Assuming the 90 days horizon Ab Global is expected to generate 1.31 times less return on investment than Mainstay Map. In addition to that, Ab Global is 1.3 times more volatile than Mainstay Map Equity. It trades about 0.07 of its total potential returns per unit of risk. Mainstay Map Equity is currently generating about 0.12 per unit of volatility. If you would invest 1,871 in Mainstay Map Equity on September 4, 2024 and sell it today you would earn a total of 388.00 from holding Mainstay Map Equity or generate 20.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global Real vs. Mainstay Map Equity
Performance |
| Timeline |
| Ab Global Real |
| Mainstay Map Equity |
Ab Global and Mainstay Map Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Mainstay Map
The main advantage of trading using opposite Ab Global and Mainstay Map positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global position performs unexpectedly, Mainstay Map 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 Map will offset losses from the drop in Mainstay Map's long position.| Ab Global vs. Eventide Healthcare Life | Ab Global vs. Alger Health Sciences | Ab Global vs. Deutsche Health And | Ab Global vs. Blackrock Health Sciences |
| Mainstay Map vs. Ab Small Cap | Mainstay Map vs. The Hartford Small | Mainstay Map vs. Us Small Cap | Mainstay Map vs. Oklahoma College Savings |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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