Correlation Between Barings Active and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Barings Active 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 Barings Active and Mainstay High 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 High Yield, you can compare the effects of market volatilities on Barings Active 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 Barings Active with a short position of Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Active and Mainstay High.
Diversification Opportunities for Barings Active and Mainstay High
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and Mainstay is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Barings Active Short 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 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 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 Barings Active i.e., Barings Active and Mainstay High go up and down completely randomly.
Pair Corralation between Barings Active and Mainstay High
Assuming the 90 days horizon Barings Active Short is expected to generate 0.45 times more return on investment than Mainstay High. However, Barings Active Short is 2.23 times less risky than Mainstay High. It trades about 0.23 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.04 per unit of risk. If you would invest 893.00 in Barings Active Short on September 19, 2024 and sell it today you would earn a total of 32.00 from holding Barings Active Short or generate 3.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Active Short vs. Mainstay High Yield
Performance |
| Timeline |
| Barings Active Short |
| Mainstay High Yield |
Barings Active and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Active and Mainstay High
The main advantage of trading using opposite Barings Active and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Active 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.| Barings Active vs. Invesco Energy Fund | Barings Active vs. Firsthand Alternative Energy | Barings Active vs. Goehring Rozencwajg Resources | Barings Active vs. Franklin Natural Resources |
| Mainstay High vs. Ab Select Longshort | Mainstay High vs. Barings Active Short | Mainstay High vs. Old Westbury Short Term | Mainstay High vs. Calvert Short Duration |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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