Correlation Between Global Fixed and Mainstay Convertible
Can any of the company-specific risk be diversified away by investing in both Global Fixed and Mainstay Convertible 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 Global Fixed and Mainstay Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Fixed Income and Mainstay Vertible Fund, you can compare the effects of market volatilities on Global Fixed and Mainstay Convertible 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 Global Fixed with a short position of Mainstay Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Fixed and Mainstay Convertible.
Diversification Opportunities for Global Fixed and Mainstay Convertible
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Global and Mainstay is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Global Fixed Income and Mainstay Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Convertible and Global Fixed 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 Global Fixed Income are associated (or correlated) with Mainstay Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Convertible has no effect on the direction of Global Fixed i.e., Global Fixed and Mainstay Convertible go up and down completely randomly.
Pair Corralation between Global Fixed and Mainstay Convertible
Assuming the 90 days horizon Global Fixed is expected to generate 4.75 times less return on investment than Mainstay Convertible. But when comparing it to its historical volatility, Global Fixed Income is 2.3 times less risky than Mainstay Convertible. It trades about 0.16 of its potential returns per unit of risk. Mainstay Vertible Fund is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 1,865 in Mainstay Vertible Fund on November 1, 2024 and sell it today you would earn a total of 52.00 from holding Mainstay Vertible Fund or generate 2.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Fixed Income vs. Mainstay Vertible Fund
Performance |
| Timeline |
| Global Fixed Income |
| Mainstay Convertible |
Global Fixed and Mainstay Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Fixed and Mainstay Convertible
The main advantage of trading using opposite Global Fixed and Mainstay Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Fixed position performs unexpectedly, Mainstay Convertible 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 Mainstay Convertible will offset losses from the drop in Mainstay Convertible's long position.| Global Fixed vs. Morningstar Defensive Bond | Global Fixed vs. Dreyfusstandish Global Fixed | Global Fixed vs. Doubleline Total Return | Global Fixed vs. Artisan High Income |
| Mainstay Convertible vs. Mainstay High Yield | Mainstay Convertible vs. Mainstay Income Builder | Mainstay Convertible vs. Mainstay Sp 500 | Mainstay Convertible vs. Mainstay Large Cap |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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