Correlation Between Mainstay Cushing and Touchstone Premium
Can any of the company-specific risk be diversified away by investing in both Mainstay Cushing and Touchstone Premium 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 Touchstone Premium 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 Touchstone Premium Yield, you can compare the effects of market volatilities on Mainstay Cushing and Touchstone Premium 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 Touchstone Premium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Cushing and Touchstone Premium.
Diversification Opportunities for Mainstay Cushing and Touchstone Premium
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mainstay and Touchstone is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Cushing Mlp and Touchstone Premium Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Premium Yield 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 Touchstone Premium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Premium Yield has no effect on the direction of Mainstay Cushing i.e., Mainstay Cushing and Touchstone Premium go up and down completely randomly.
Pair Corralation between Mainstay Cushing and Touchstone Premium
Assuming the 90 days horizon Mainstay Cushing Mlp is expected to generate 1.18 times more return on investment than Touchstone Premium. However, Mainstay Cushing is 1.18 times more volatile than Touchstone Premium Yield. It trades about 0.21 of its potential returns per unit of risk. Touchstone Premium Yield is currently generating about 0.09 per unit of risk. If you would invest 1,019 in Mainstay Cushing Mlp on September 12, 2024 and sell it today you would earn a total of 144.00 from holding Mainstay Cushing Mlp or generate 14.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Cushing Mlp vs. Touchstone Premium Yield
Performance |
| Timeline |
| Mainstay Cushing Mlp |
| Touchstone Premium Yield |
Mainstay Cushing and Touchstone Premium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Cushing and Touchstone Premium
The main advantage of trading using opposite Mainstay Cushing and Touchstone Premium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Cushing position performs unexpectedly, Touchstone Premium 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 Touchstone Premium will offset losses from the drop in Touchstone Premium's long position.| Mainstay Cushing vs. Nasdaq 100 Index Fund | Mainstay Cushing vs. Ab Small Cap | Mainstay Cushing vs. Balanced Fund Investor | Mainstay Cushing vs. Small Cap Stock |
| Touchstone Premium vs. Europacific Growth Fund | Touchstone Premium vs. SCOR PK | Touchstone Premium vs. Morningstar Unconstrained Allocation | Touchstone Premium vs. Thrivent High Yield |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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