Correlation Between Mainstay Cushing and Ab Small
Can any of the company-specific risk be diversified away by investing in both Mainstay Cushing and Ab Small 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 Ab Small 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 Ab Small Cap, you can compare the effects of market volatilities on Mainstay Cushing and Ab Small 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 Ab Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Cushing and Ab Small.
Diversification Opportunities for Mainstay Cushing and Ab Small
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and SCYVX is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Cushing Mlp and Ab Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Small Cap 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 Ab Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Small Cap has no effect on the direction of Mainstay Cushing i.e., Mainstay Cushing and Ab Small go up and down completely randomly.
Pair Corralation between Mainstay Cushing and Ab Small
Assuming the 90 days horizon Mainstay Cushing Mlp is expected to generate 0.66 times more return on investment than Ab Small. However, Mainstay Cushing Mlp is 1.52 times less risky than Ab Small. It trades about 0.24 of its potential returns per unit of risk. Ab Small Cap is currently generating about 0.1 per unit of risk. If you would invest 932.00 in Mainstay Cushing Mlp on September 1, 2024 and sell it today you would earn a total of 295.00 from holding Mainstay Cushing Mlp or generate 31.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Mainstay Cushing Mlp vs. Ab Small Cap
Performance |
| Timeline |
| Mainstay Cushing Mlp |
| Ab Small Cap |
Mainstay Cushing and Ab Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Cushing and Ab Small
The main advantage of trading using opposite Mainstay Cushing and Ab Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Cushing position performs unexpectedly, Ab Small 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 Ab Small will offset losses from the drop in Ab Small's long position.| Mainstay Cushing vs. Multisector Bond Sma | Mainstay Cushing vs. Calamos Dynamic Convertible | Mainstay Cushing vs. Ms Global Fixed | Mainstay Cushing vs. Artisan High Income |
| Ab Small vs. Ab Global E | Ab Small vs. Ab Global E | Ab Small vs. Ab Global E | Ab Small vs. Ab Minnesota Portfolio |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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