Correlation Between Mainstay Cushing and Transamerica Mlp
Can any of the company-specific risk be diversified away by investing in both Mainstay Cushing and Transamerica 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 Transamerica 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 Transamerica Mlp Energy, you can compare the effects of market volatilities on Mainstay Cushing and Transamerica 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 Transamerica Mlp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Cushing and Transamerica Mlp.
Diversification Opportunities for Mainstay Cushing and Transamerica Mlp
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Mainstay and Transamerica is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Cushing Mlp and Transamerica Mlp Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transamerica 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 Transamerica Mlp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transamerica Mlp Energy has no effect on the direction of Mainstay Cushing i.e., Mainstay Cushing and Transamerica Mlp go up and down completely randomly.
Pair Corralation between Mainstay Cushing and Transamerica Mlp
Assuming the 90 days horizon Mainstay Cushing Mlp is expected to generate 1.0 times more return on investment than Transamerica Mlp. However, Mainstay Cushing is 1.0 times more volatile than Transamerica Mlp Energy. It trades about 0.42 of its potential returns per unit of risk. Transamerica Mlp Energy is currently generating about 0.41 per unit of risk. If you would invest 1,159 in Mainstay Cushing Mlp on September 5, 2024 and sell it today you would earn a total of 135.00 from holding Mainstay Cushing Mlp or generate 11.65% 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. Transamerica Mlp Energy
Performance |
| Timeline |
| Mainstay Cushing Mlp |
| Transamerica Mlp Energy |
Mainstay Cushing and Transamerica Mlp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Cushing and Transamerica Mlp
The main advantage of trading using opposite Mainstay Cushing and Transamerica Mlp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Cushing position performs unexpectedly, Transamerica 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 Transamerica Mlp will offset losses from the drop in Transamerica 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 |
| Transamerica Mlp vs. Transamerica Mlp Energy | Transamerica Mlp vs. Mainstay Cushing Mlp | Transamerica Mlp vs. Transamerica Capital Growth | Transamerica Mlp vs. Salient Mlp Energy |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |