Correlation Between California High-yield and Mainstay High
Can any of the company-specific risk be diversified away by investing in both California High-yield 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 California High-yield and Mainstay High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between California High Yield Municipal and Mainstay High Yield, you can compare the effects of market volatilities on California High-yield 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 California High-yield with a short position of Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of California High-yield and Mainstay High.
Diversification Opportunities for California High-yield and Mainstay High
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between California and Mainstay is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding California High Yield Municipa 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 California High-yield 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 California High Yield Municipal 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 California High-yield i.e., California High-yield and Mainstay High go up and down completely randomly.
Pair Corralation between California High-yield and Mainstay High
Assuming the 90 days horizon California High-yield is expected to generate 1.06 times less return on investment than Mainstay High. But when comparing it to its historical volatility, California High Yield Municipal is 1.27 times less risky than Mainstay High. It trades about 0.2 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,195 in Mainstay High Yield on September 5, 2024 and sell it today you would earn a total of 18.00 from holding Mainstay High Yield or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
California High Yield Municipa vs. Mainstay High Yield
Performance |
| Timeline |
| California High Yield |
| Mainstay High Yield |
California High-yield and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with California High-yield and Mainstay High
The main advantage of trading using opposite California High-yield and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if California High-yield 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.| California High-yield vs. Oklahoma College Savings | California High-yield vs. Us Small Cap | California High-yield vs. Ab Small Cap | California High-yield vs. Champlain Small |
| Mainstay High vs. Bbh Intermediate Municipal | Mainstay High vs. California High Yield Municipal | Mainstay High vs. T Rowe Price | Mainstay High vs. Intermediate Term Tax Free 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |