Correlation Between Ab Select and Mainstay New
Can any of the company-specific risk be diversified away by investing in both Ab Select and Mainstay New 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 New 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 New York, you can compare the effects of market volatilities on Ab Select and Mainstay New 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 New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Select and Mainstay New.
Diversification Opportunities for Ab Select and Mainstay New
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AUUIX and Mainstay is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Ab Select Equity and Mainstay New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay New York 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 New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay New York has no effect on the direction of Ab Select i.e., Ab Select and Mainstay New go up and down completely randomly.
Pair Corralation between Ab Select and Mainstay New
Assuming the 90 days horizon Ab Select Equity is expected to generate 2.77 times more return on investment than Mainstay New. However, Ab Select is 2.77 times more volatile than Mainstay New York. It trades about 0.12 of its potential returns per unit of risk. Mainstay New York is currently generating about 0.07 per unit of risk. If you would invest 1,585 in Ab Select Equity on August 29, 2024 and sell it today you would earn a total of 813.00 from holding Ab Select Equity or generate 51.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Select Equity vs. Mainstay New York
Performance |
| Timeline |
| Ab Select Equity |
| Mainstay New York |
Ab Select and Mainstay New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Select and Mainstay New
The main advantage of trading using opposite Ab Select and Mainstay New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Select position performs unexpectedly, Mainstay New 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 New will offset losses from the drop in Mainstay New's long position.| Ab Select vs. Financials Ultrasector Profund | Ab Select vs. Icon Financial Fund | Ab Select vs. Davis Financial Fund | Ab Select vs. Prudential Jennison Financial |
| Mainstay New vs. Locorr Dynamic Equity | Mainstay New vs. Cutler Equity | Mainstay New vs. Calamos Global Equity | Mainstay New vs. Ab Select 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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