Correlation Between Amg River and Mainstay Wmc
Can any of the company-specific risk be diversified away by investing in both Amg River and Mainstay Wmc 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 Amg River and Mainstay Wmc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg River Road and Mainstay Wmc Value, you can compare the effects of market volatilities on Amg River and Mainstay Wmc 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 Amg River with a short position of Mainstay Wmc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg River and Mainstay Wmc.
Diversification Opportunities for Amg River and Mainstay Wmc
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amg and Mainstay is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Amg River Road and Mainstay Wmc Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Wmc Value and Amg River 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 Amg River Road are associated (or correlated) with Mainstay Wmc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Wmc Value has no effect on the direction of Amg River i.e., Amg River and Mainstay Wmc go up and down completely randomly.
Pair Corralation between Amg River and Mainstay Wmc
Assuming the 90 days horizon Amg River Road is expected to generate 1.22 times more return on investment than Mainstay Wmc. However, Amg River is 1.22 times more volatile than Mainstay Wmc Value. It trades about 0.06 of its potential returns per unit of risk. Mainstay Wmc Value is currently generating about 0.04 per unit of risk. If you would invest 910.00 in Amg River Road on September 12, 2024 and sell it today you would earn a total of 189.00 from holding Amg River Road or generate 20.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg River Road vs. Mainstay Wmc Value
Performance |
| Timeline |
| Amg River Road |
| Mainstay Wmc Value |
Amg River and Mainstay Wmc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg River and Mainstay Wmc
The main advantage of trading using opposite Amg River and Mainstay Wmc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg River position performs unexpectedly, Mainstay Wmc 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 Wmc will offset losses from the drop in Mainstay Wmc's long position.| Amg River vs. Vanguard Small Cap Value | Amg River vs. Vanguard Small Cap Value | Amg River vs. Us Small Cap | Amg River vs. Us Targeted Value |
| Mainstay Wmc vs. Ab Select Equity | Mainstay Wmc vs. Touchstone International Equity | Mainstay Wmc vs. Ms Global Fixed | Mainstay Wmc vs. Calamos Global Equity |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |