Correlation Between Cutler Equity and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Cutler Equity and Mainstay High 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 Cutler Equity and Mainstay High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cutler Equity and Mainstay High Yield, you can compare the effects of market volatilities on Cutler Equity and Mainstay High 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 Cutler Equity with a short position of Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cutler Equity and Mainstay High.
Diversification Opportunities for Cutler Equity and Mainstay High
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cutler and Mainstay is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Cutler Equity and Mainstay High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay High Yield and Cutler Equity 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 Cutler Equity are associated (or correlated) with Mainstay High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay High Yield has no effect on the direction of Cutler Equity i.e., Cutler Equity and Mainstay High go up and down completely randomly.
Pair Corralation between Cutler Equity and Mainstay High
Assuming the 90 days horizon Cutler Equity is expected to generate 1.88 times more return on investment than Mainstay High. However, Cutler Equity is 1.88 times more volatile than Mainstay High Yield. It trades about 0.16 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.03 per unit of risk. If you would invest 2,736 in Cutler Equity on September 12, 2024 and sell it today you would earn a total of 163.00 from holding Cutler Equity or generate 5.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cutler Equity vs. Mainstay High Yield
Performance |
| Timeline |
| Cutler Equity |
| Mainstay High Yield |
Cutler Equity and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cutler Equity and Mainstay High
The main advantage of trading using opposite Cutler Equity and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cutler Equity position performs unexpectedly, Mainstay High 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 High will offset losses from the drop in Mainstay High's long position.| Cutler Equity vs. Ab Global Risk | Cutler Equity vs. Kinetics Global Fund | Cutler Equity vs. Siit Global Managed | Cutler Equity vs. Mirova Global Green |
| Mainstay High vs. Fa 529 Aggressive | Mainstay High vs. Volumetric Fund Volumetric | Mainstay High vs. Abr 7525 Volatility | Mainstay High vs. Aam Select Income |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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