Correlation Between Shelton Emerging and Mainstay Map
Can any of the company-specific risk be diversified away by investing in both Shelton Emerging and Mainstay Map 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 Shelton Emerging and Mainstay Map into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Emerging Markets and Mainstay Map Equity, you can compare the effects of market volatilities on Shelton Emerging and Mainstay Map 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 Shelton Emerging with a short position of Mainstay Map. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Emerging and Mainstay Map.
Diversification Opportunities for Shelton Emerging and Mainstay Map
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shelton and Mainstay is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Emerging Markets and Mainstay Map Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Map Equity and Shelton Emerging 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 Shelton Emerging Markets are associated (or correlated) with Mainstay Map. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Map Equity has no effect on the direction of Shelton Emerging i.e., Shelton Emerging and Mainstay Map go up and down completely randomly.
Pair Corralation between Shelton Emerging and Mainstay Map
Assuming the 90 days horizon Shelton Emerging Markets is expected to under-perform the Mainstay Map. But the mutual fund apears to be less risky and, when comparing its historical volatility, Shelton Emerging Markets is 1.21 times less risky than Mainstay Map. The mutual fund trades about -0.15 of its potential returns per unit of risk. The Mainstay Map Equity is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 3,188 in Mainstay Map Equity on September 13, 2024 and sell it today you would lose (150.00) from holding Mainstay Map Equity or give up 4.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shelton Emerging Markets vs. Mainstay Map Equity
Performance |
| Timeline |
| Shelton Emerging Markets |
| Mainstay Map Equity |
Shelton Emerging and Mainstay Map Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Emerging and Mainstay Map
The main advantage of trading using opposite Shelton Emerging and Mainstay Map positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Emerging position performs unexpectedly, Mainstay Map 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 Map will offset losses from the drop in Mainstay Map's long position.The idea behind Shelton Emerging Markets and Mainstay Map Equity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Mainstay Map vs. Vy Jpmorgan Emerging | Mainstay Map vs. Angel Oak Multi Strategy | Mainstay Map vs. Shelton Emerging Markets | Mainstay Map vs. Pnc Emerging Markets |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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