Correlation Between Mainstay Cushing and Salient Mlp
Can any of the company-specific risk be diversified away by investing in both Mainstay Cushing and Salient Mlp 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 Salient Mlp 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 Salient Mlp Energy, you can compare the effects of market volatilities on Mainstay Cushing and Salient Mlp 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 Salient Mlp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Cushing and Salient Mlp.
Diversification Opportunities for Mainstay Cushing and Salient Mlp
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Mainstay and Salient is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Cushing Mlp and Salient Mlp Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient Mlp Energy 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 Salient Mlp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient Mlp Energy has no effect on the direction of Mainstay Cushing i.e., Mainstay Cushing and Salient Mlp go up and down completely randomly.
Pair Corralation between Mainstay Cushing and Salient Mlp
Assuming the 90 days horizon Mainstay Cushing Mlp is expected to generate 1.07 times more return on investment than Salient Mlp. However, Mainstay Cushing is 1.07 times more volatile than Salient Mlp Energy. It trades about 0.55 of its potential returns per unit of risk. Salient Mlp Energy is currently generating about 0.48 per unit of risk. If you would invest 1,158 in Mainstay Cushing Mlp on September 1, 2024 and sell it today you would earn a total of 163.00 from holding Mainstay Cushing Mlp or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Cushing Mlp vs. Salient Mlp Energy
Performance |
| Timeline |
| Mainstay Cushing Mlp |
| Salient Mlp Energy |
Mainstay Cushing and Salient Mlp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Cushing and Salient Mlp
The main advantage of trading using opposite Mainstay Cushing and Salient Mlp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Cushing position performs unexpectedly, Salient Mlp 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 Salient Mlp will offset losses from the drop in Salient Mlp's long position.| Mainstay Cushing vs. Mainstay High Yield | Mainstay Cushing vs. Mainstay Tax Free | Mainstay Cushing vs. Mainstay Income Builder | Mainstay Cushing vs. Mainstay Large Cap |
| Salient Mlp vs. Legg Mason Partners | Salient Mlp vs. Small Pany Growth | Salient Mlp vs. Touchstone Small Cap | Salient Mlp vs. L Abbett Growth |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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