Correlation Between Champlain Mid and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Champlain Mid and Mainstay Large 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 Champlain Mid and Mainstay Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champlain Mid Cap and Mainstay Large Cap, you can compare the effects of market volatilities on Champlain Mid and Mainstay Large 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 Champlain Mid with a short position of Mainstay Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champlain Mid and Mainstay Large.
Diversification Opportunities for Champlain Mid and Mainstay Large
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Champlain and Mainstay is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Champlain Mid Cap and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap and Champlain Mid 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 Champlain Mid Cap are associated (or correlated) with Mainstay Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of Champlain Mid i.e., Champlain Mid and Mainstay Large go up and down completely randomly.
Pair Corralation between Champlain Mid and Mainstay Large
Assuming the 90 days horizon Champlain Mid is expected to generate 1.15 times less return on investment than Mainstay Large. But when comparing it to its historical volatility, Champlain Mid Cap is 1.4 times less risky than Mainstay Large. It trades about 0.12 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 564.00 in Mainstay Large Cap on September 2, 2024 and sell it today you would earn a total of 85.00 from holding Mainstay Large Cap or generate 15.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champlain Mid Cap vs. Mainstay Large Cap
Performance |
| Timeline |
| Champlain Mid Cap |
| Mainstay Large Cap |
Champlain Mid and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champlain Mid and Mainstay Large
The main advantage of trading using opposite Champlain Mid and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champlain Mid position performs unexpectedly, Mainstay Large 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 Large will offset losses from the drop in Mainstay Large's long position.| Champlain Mid vs. Champlain Small Pany | Champlain Mid vs. T Rowe Price | Champlain Mid vs. American Mutual Fund | Champlain Mid vs. Loomis Sayles Growth |
| Mainstay Large vs. Dodge Cox Stock | Mainstay Large vs. Qs Large Cap | Mainstay Large vs. Transamerica Large Cap | Mainstay Large vs. John Hancock Investment |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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