Correlation Between Barings Active and Mainstay Convertible
Can any of the company-specific risk be diversified away by investing in both Barings Active and Mainstay Convertible 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 Convertible 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 Vertible Fund, you can compare the effects of market volatilities on Barings Active and Mainstay Convertible 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 Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Active and Mainstay Convertible.
Diversification Opportunities for Barings Active and Mainstay Convertible
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Barings and Mainstay is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Barings Active Short and Mainstay Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Convertible 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 Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Convertible has no effect on the direction of Barings Active i.e., Barings Active and Mainstay Convertible go up and down completely randomly.
Pair Corralation between Barings Active and Mainstay Convertible
Assuming the 90 days horizon Barings Active Short is expected to generate 0.21 times more return on investment than Mainstay Convertible. However, Barings Active Short is 4.66 times less risky than Mainstay Convertible. It trades about 0.26 of its potential returns per unit of risk. Mainstay Vertible Fund is currently generating about -0.14 per unit of risk. If you would invest 920.00 in Barings Active Short on November 27, 2024 and sell it today you would earn a total of 5.00 from holding Barings Active Short or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Active Short vs. Mainstay Vertible Fund
Performance |
| Timeline |
| Barings Active Short |
| Mainstay Convertible |
Barings Active and Mainstay Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Active and Mainstay Convertible
The main advantage of trading using opposite Barings Active and Mainstay Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Active position performs unexpectedly, Mainstay Convertible 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 Convertible will offset losses from the drop in Mainstay Convertible's long position.| Barings Active vs. Glg Intl Small | Barings Active vs. Versatile Bond Portfolio | Barings Active vs. Tfa Alphagen Growth | Barings Active vs. Rbb Fund |
| Mainstay Convertible vs. Us Global Investors | Mainstay Convertible vs. Legg Mason Bw | Mainstay Convertible vs. Mirova Global Green | Mainstay Convertible 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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