Correlation Between Ab Select and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Ab Select and Mainstay High 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 Select and Mainstay High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Select Equity and Mainstay High Yield, you can compare the effects of market volatilities on Ab Select and Mainstay High 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 Select with a short position of Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Select and Mainstay High.
Diversification Opportunities for Ab Select and Mainstay High
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between AUUIX and Mainstay is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Ab Select Equity and Mainstay High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay High Yield and Ab Select 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 Select Equity are associated (or correlated) with Mainstay High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay High Yield has no effect on the direction of Ab Select i.e., Ab Select and Mainstay High go up and down completely randomly.
Pair Corralation between Ab Select and Mainstay High
Assuming the 90 days horizon Ab Select Equity is expected to generate 2.28 times more return on investment than Mainstay High. However, Ab Select is 2.28 times more volatile than Mainstay High Yield. It trades about 0.12 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.07 per unit of risk. If you would invest 1,596 in Ab Select Equity on September 4, 2024 and sell it today you would earn a total of 814.00 from holding Ab Select Equity or generate 51.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Ab Select Equity vs. Mainstay High Yield
Performance |
| Timeline |
| Ab Select Equity |
| Mainstay High Yield |
Ab Select and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Select and Mainstay High
The main advantage of trading using opposite Ab Select and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Select position performs unexpectedly, Mainstay High 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 High will offset losses from the drop in Mainstay High's long position.| Ab Select vs. Ab Global E | Ab Select vs. Ab Global E | Ab Select vs. Ab Global E | Ab Select vs. Ab Minnesota Portfolio |
| Mainstay High vs. Legg Mason Partners | Mainstay High vs. Virtus Dfa 2040 | Mainstay High vs. John Hancock Funds | Mainstay High vs. Transamerica Asset Allocation |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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