Correlation Between Amg River and Mainstay Cushing
Can any of the company-specific risk be diversified away by investing in both Amg River and Mainstay Cushing 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 Cushing 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 Cushing Mlp, you can compare the effects of market volatilities on Amg River and Mainstay Cushing 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 Cushing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg River and Mainstay Cushing.
Diversification Opportunities for Amg River and Mainstay Cushing
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amg and Mainstay is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Amg River Road and Mainstay Cushing Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Cushing Mlp 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 Cushing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Cushing Mlp has no effect on the direction of Amg River i.e., Amg River and Mainstay Cushing go up and down completely randomly.
Pair Corralation between Amg River and Mainstay Cushing
Assuming the 90 days horizon Amg River Road is expected to generate 0.55 times more return on investment than Mainstay Cushing. However, Amg River Road is 1.8 times less risky than Mainstay Cushing. It trades about 0.02 of its potential returns per unit of risk. Mainstay Cushing Mlp is currently generating about 0.0 per unit of risk. If you would invest 1,736 in Amg River Road on September 13, 2024 and sell it today you would earn a total of 3.00 from holding Amg River Road or generate 0.17% 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 Cushing Mlp
Performance |
| Timeline |
| Amg River Road |
| Mainstay Cushing Mlp |
Amg River and Mainstay Cushing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg River and Mainstay Cushing
The main advantage of trading using opposite Amg River and Mainstay Cushing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg River position performs unexpectedly, Mainstay Cushing 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 Cushing will offset losses from the drop in Mainstay Cushing's long position.| Amg River vs. Alger Smallcap Growth | Amg River vs. Deutsche Global Real | Amg River vs. Amg River Road | Amg River vs. Delaware Value Fund |
| Mainstay Cushing vs. Cref Money Market | Mainstay Cushing vs. Putnam Money Market | Mainstay Cushing vs. Elfun Government Money | Mainstay Cushing vs. John Hancock Money |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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