Correlation Between Aam Select and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Aam Select 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 Aam Select and Mainstay High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aam Select Income and Mainstay High Yield, you can compare the effects of market volatilities on Aam Select 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 Aam Select with a short position of Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aam Select and Mainstay High.
Diversification Opportunities for Aam Select and Mainstay High
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aam and Mainstay is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Aam Select Income 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 Aam Select 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 Aam Select Income 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 Aam Select i.e., Aam Select and Mainstay High go up and down completely randomly.
Pair Corralation between Aam Select and Mainstay High
Assuming the 90 days horizon Aam Select is expected to generate 1.12 times less return on investment than Mainstay High. In addition to that, Aam Select is 1.18 times more volatile than Mainstay High Yield. It trades about 0.08 of its total potential returns per unit of risk. Mainstay High Yield is currently generating about 0.1 per unit of volatility. If you would invest 1,063 in Mainstay High Yield on December 2, 2024 and sell it today you would earn a total of 133.00 from holding Mainstay High Yield or generate 12.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aam Select Income vs. Mainstay High Yield
Performance |
| Timeline |
| Aam Select Income |
| Mainstay High Yield |
Aam Select and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aam Select and Mainstay High
The main advantage of trading using opposite Aam Select and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aam Select 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.| Aam Select vs. Tiaa Cref Inflation Linked Bond | Aam Select vs. Aqr Managed Futures | Aam Select vs. Inflation Linked Fixed Income | Aam Select vs. Simt Multi Asset Inflation |
| Mainstay High vs. Barings Active Short | Mainstay High vs. Gmo High Yield | Mainstay High vs. Rbc Bluebay Emerging | Mainstay High vs. Massmutual Premier E |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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