Correlation Between Champlain Mid and Mainstay Mon
Can any of the company-specific risk be diversified away by investing in both Champlain Mid and Mainstay Mon 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 Mon 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 Mon Stock, you can compare the effects of market volatilities on Champlain Mid and Mainstay Mon 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 Mon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champlain Mid and Mainstay Mon.
Diversification Opportunities for Champlain Mid and Mainstay Mon
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Champlain and Mainstay is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Champlain Mid Cap and Mainstay Mon Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mon Stock 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 Mon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Mon Stock has no effect on the direction of Champlain Mid i.e., Champlain Mid and Mainstay Mon go up and down completely randomly.
Pair Corralation between Champlain Mid and Mainstay Mon
Assuming the 90 days horizon Champlain Mid Cap is expected to generate 1.29 times more return on investment than Mainstay Mon. However, Champlain Mid is 1.29 times more volatile than Mainstay Mon Stock. It trades about 0.11 of its potential returns per unit of risk. Mainstay Mon Stock is currently generating about -0.08 per unit of risk. If you would invest 2,532 in Champlain Mid Cap on September 15, 2024 and sell it today you would earn a total of 52.00 from holding Champlain Mid Cap or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champlain Mid Cap vs. Mainstay Mon Stock
Performance |
| Timeline |
| Champlain Mid Cap |
| Mainstay Mon Stock |
Champlain Mid and Mainstay Mon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champlain Mid and Mainstay Mon
The main advantage of trading using opposite Champlain Mid and Mainstay Mon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champlain Mid position performs unexpectedly, Mainstay Mon 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 Mon will offset losses from the drop in Mainstay Mon'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 Mon vs. Mainstay High Yield | Mainstay Mon vs. Mainstay Tax Free | Mainstay Mon vs. Mainstay Income Builder | Mainstay Mon vs. Mainstay Large Cap |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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