Correlation Between Barings Active and Mainstay Cushing
Can any of the company-specific risk be diversified away by investing in both Barings Active and Mainstay Cushing 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 Barings Active and Mainstay Cushing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Active Short and Mainstay Cushing Mlp, you can compare the effects of market volatilities on Barings Active and Mainstay Cushing 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 Barings Active with a short position of Mainstay Cushing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Active and Mainstay Cushing.
Diversification Opportunities for Barings Active and Mainstay Cushing
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and Mainstay is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Barings Active Short and Mainstay Cushing Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Cushing Mlp and Barings Active 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 Barings Active Short are associated (or correlated) with Mainstay Cushing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Cushing Mlp has no effect on the direction of Barings Active i.e., Barings Active and Mainstay Cushing go up and down completely randomly.
Pair Corralation between Barings Active and Mainstay Cushing
Assuming the 90 days horizon Barings Active is expected to generate 58.13 times less return on investment than Mainstay Cushing. But when comparing it to its historical volatility, Barings Active Short is 9.35 times less risky than Mainstay Cushing. It trades about 0.09 of its potential returns per unit of risk. Mainstay Cushing Mlp is currently generating about 0.55 of returns per unit of risk over similar time horizon. If you would invest 1,076 in Mainstay Cushing Mlp on September 1, 2024 and sell it today you would earn a total of 151.00 from holding Mainstay Cushing Mlp or generate 14.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Barings Active Short vs. Mainstay Cushing Mlp
Performance |
| Timeline |
| Barings Active Short |
| Mainstay Cushing Mlp |
Barings Active and Mainstay Cushing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Active and Mainstay Cushing
The main advantage of trading using opposite Barings Active and Mainstay Cushing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Active position performs unexpectedly, Mainstay Cushing 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 Cushing will offset losses from the drop in Mainstay Cushing's long position.| Barings Active vs. Ab Bond Inflation | Barings Active vs. Western Asset Inflation | Barings Active vs. Blackrock Inflation Protected | Barings Active vs. Aqr Managed Futures |
| Mainstay Cushing vs. Multisector Bond Sma | Mainstay Cushing vs. Calamos Dynamic Convertible | Mainstay Cushing vs. Ms Global Fixed | Mainstay Cushing vs. Artisan High Income |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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