Correlation Between Mainstay Cushing and Alphacentric Income
Can any of the company-specific risk be diversified away by investing in both Mainstay Cushing and Alphacentric Income 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 Mainstay Cushing and Alphacentric Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Cushing Mlp and Alphacentric Income Opportunities, you can compare the effects of market volatilities on Mainstay Cushing and Alphacentric Income 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 Mainstay Cushing with a short position of Alphacentric Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Cushing and Alphacentric Income.
Diversification Opportunities for Mainstay Cushing and Alphacentric Income
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mainstay and Alphacentric is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Cushing Mlp and Alphacentric Income Opportunit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphacentric Income and Mainstay Cushing 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 Mainstay Cushing Mlp are associated (or correlated) with Alphacentric Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphacentric Income has no effect on the direction of Mainstay Cushing i.e., Mainstay Cushing and Alphacentric Income go up and down completely randomly.
Pair Corralation between Mainstay Cushing and Alphacentric Income
Assuming the 90 days horizon Mainstay Cushing Mlp is expected to generate 3.87 times more return on investment than Alphacentric Income. However, Mainstay Cushing is 3.87 times more volatile than Alphacentric Income Opportunities. It trades about 0.51 of its potential returns per unit of risk. Alphacentric Income Opportunities is currently generating about 0.08 per unit of risk. If you would invest 1,072 in Mainstay Cushing Mlp on August 29, 2024 and sell it today you would earn a total of 146.00 from holding Mainstay Cushing Mlp or generate 13.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Cushing Mlp vs. Alphacentric Income Opportunit
Performance |
| Timeline |
| Mainstay Cushing Mlp |
| Alphacentric Income |
Mainstay Cushing and Alphacentric Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Cushing and Alphacentric Income
The main advantage of trading using opposite Mainstay Cushing and Alphacentric Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Cushing position performs unexpectedly, Alphacentric Income 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 Alphacentric Income will offset losses from the drop in Alphacentric Income's long position.| Mainstay Cushing vs. Ab Small Cap | Mainstay Cushing vs. Shelton Funds | Mainstay Cushing vs. Barings Active Short | Mainstay Cushing vs. Jp Morgan Smartretirement |
| Alphacentric Income vs. Pimco Income Fund | Alphacentric Income vs. HUMANA INC | Alphacentric Income vs. Aquagold International | Alphacentric Income vs. Barloworld Ltd ADR |
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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