Correlation Between Baird Strategic and Mainstay Moderate
Can any of the company-specific risk be diversified away by investing in both Baird Strategic and Mainstay Moderate 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 Strategic and Mainstay Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baird Strategic Municipal and Mainstay Moderate Allocation, you can compare the effects of market volatilities on Baird Strategic and Mainstay Moderate 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 Strategic with a short position of Mainstay Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baird Strategic and Mainstay Moderate.
Diversification Opportunities for Baird Strategic and Mainstay Moderate
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Baird and Mainstay is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Baird Strategic Municipal and Mainstay Moderate Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Moderate and Baird Strategic 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 Strategic Municipal are associated (or correlated) with Mainstay Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Moderate has no effect on the direction of Baird Strategic i.e., Baird Strategic and Mainstay Moderate go up and down completely randomly.
Pair Corralation between Baird Strategic and Mainstay Moderate
Assuming the 90 days horizon Baird Strategic is expected to generate 2.17 times less return on investment than Mainstay Moderate. But when comparing it to its historical volatility, Baird Strategic Municipal is 3.35 times less risky than Mainstay Moderate. It trades about 0.12 of its potential returns per unit of risk. Mainstay Moderate Allocation is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,140 in Mainstay Moderate Allocation on December 4, 2024 and sell it today you would earn a total of 230.00 from holding Mainstay Moderate Allocation or generate 20.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.78% |
| Values | Daily Returns |
Baird Strategic Municipal vs. Mainstay Moderate Allocation
Performance |
| Timeline |
| Baird Strategic Municipal |
| Mainstay Moderate |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Baird Strategic and Mainstay Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baird Strategic and Mainstay Moderate
The main advantage of trading using opposite Baird Strategic and Mainstay Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baird Strategic position performs unexpectedly, Mainstay Moderate 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 Moderate will offset losses from the drop in Mainstay Moderate's long position.| Baird Strategic vs. Furyax | Baird Strategic vs. Iaadx | Baird Strategic vs. Arrow Managed Futures | Baird Strategic vs. Wmcanx |
| Mainstay Moderate vs. Boston Partners Small | Mainstay Moderate vs. T Rowe Price | Mainstay Moderate vs. Ultrasmall Cap Profund Ultrasmall Cap | Mainstay Moderate vs. T Rowe Price |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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