Correlation Between Baird Smallmid and Mainstay Growth
Can any of the company-specific risk be diversified away by investing in both Baird Smallmid and Mainstay Growth 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 Baird Smallmid and Mainstay Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baird Smallmid Cap and Mainstay Growth Etf, you can compare the effects of market volatilities on Baird Smallmid and Mainstay Growth 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 Baird Smallmid with a short position of Mainstay Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baird Smallmid and Mainstay Growth.
Diversification Opportunities for Baird Smallmid and Mainstay Growth
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Baird and Mainstay is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Baird Smallmid Cap and Mainstay Growth Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Growth Etf and Baird Smallmid 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 Baird Smallmid Cap are associated (or correlated) with Mainstay Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Growth Etf has no effect on the direction of Baird Smallmid i.e., Baird Smallmid and Mainstay Growth go up and down completely randomly.
Pair Corralation between Baird Smallmid and Mainstay Growth
Assuming the 90 days horizon Baird Smallmid Cap is expected to generate 1.77 times more return on investment than Mainstay Growth. However, Baird Smallmid is 1.77 times more volatile than Mainstay Growth Etf. It trades about 0.22 of its potential returns per unit of risk. Mainstay Growth Etf is currently generating about 0.17 per unit of risk. If you would invest 1,549 in Baird Smallmid Cap on September 12, 2024 and sell it today you would earn a total of 224.00 from holding Baird Smallmid Cap or generate 14.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baird Smallmid Cap vs. Mainstay Growth Etf
Performance |
| Timeline |
| Baird Smallmid Cap |
| Mainstay Growth Etf |
Baird Smallmid and Mainstay Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baird Smallmid and Mainstay Growth
The main advantage of trading using opposite Baird Smallmid and Mainstay Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baird Smallmid position performs unexpectedly, Mainstay Growth 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 Growth will offset losses from the drop in Mainstay Growth's long position.| Baird Smallmid vs. Qs Moderate Growth | Baird Smallmid vs. Qs Moderate Growth | Baird Smallmid vs. Wilmington Trust Retirement | Baird Smallmid vs. Columbia Moderate Growth |
| Mainstay Growth vs. Shelton Emerging Markets | Mainstay Growth vs. Black Oak Emerging | Mainstay Growth vs. Vy Jpmorgan Emerging | Mainstay Growth vs. Pnc Emerging Markets |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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