Correlation Between Aam/himco Short and Mainstay Map
Can any of the company-specific risk be diversified away by investing in both Aam/himco Short 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 Aam/himco Short and Mainstay Map into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aamhimco Short Duration and Mainstay Map Equity, you can compare the effects of market volatilities on Aam/himco Short 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 Aam/himco Short with a short position of Mainstay Map. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aam/himco Short and Mainstay Map.
Diversification Opportunities for Aam/himco Short and Mainstay Map
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aam/himco and Mainstay is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Aamhimco Short Duration 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 Aam/himco Short 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 Aamhimco Short Duration 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 Aam/himco Short i.e., Aam/himco Short and Mainstay Map go up and down completely randomly.
Pair Corralation between Aam/himco Short and Mainstay Map
Assuming the 90 days horizon Aam/himco Short is expected to generate 24.57 times less return on investment than Mainstay Map. But when comparing it to its historical volatility, Aamhimco Short Duration is 6.1 times less risky than Mainstay Map. It trades about 0.09 of its potential returns per unit of risk. Mainstay Map Equity is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 1,983 in Mainstay Map Equity on November 3, 2024 and sell it today you would earn a total of 104.00 from holding Mainstay Map Equity or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Aamhimco Short Duration vs. Mainstay Map Equity
Performance |
| Timeline |
| Aamhimco Short Duration |
| Mainstay Map Equity |
Aam/himco Short and Mainstay Map Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aam/himco Short and Mainstay Map
The main advantage of trading using opposite Aam/himco Short and Mainstay Map positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aam/himco Short 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.| Aam/himco Short vs. Rbb Fund | Aam/himco Short vs. Fbjygx | Aam/himco Short vs. Abr 7525 Volatility | Aam/himco Short vs. Small Pany Growth |
| Mainstay Map vs. Dws Global Macro | Mainstay Map vs. Qs Large Cap | Mainstay Map vs. Rbc Global Equity | Mainstay Map vs. Ab Global Bond |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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