Correlation Between Shelton Emerging and Mainstay Income
Can any of the company-specific risk be diversified away by investing in both Shelton Emerging and Mainstay Income 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 Income 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 Income Builder, you can compare the effects of market volatilities on Shelton Emerging and Mainstay Income 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 Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Emerging and Mainstay Income.
Diversification Opportunities for Shelton Emerging and Mainstay Income
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shelton and Mainstay is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Emerging Markets and Mainstay Income Builder in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Income Builder 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 Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Income Builder has no effect on the direction of Shelton Emerging i.e., Shelton Emerging and Mainstay Income go up and down completely randomly.
Pair Corralation between Shelton Emerging and Mainstay Income
Assuming the 90 days horizon Shelton Emerging is expected to generate 2.75 times less return on investment than Mainstay Income. In addition to that, Shelton Emerging is 1.78 times more volatile than Mainstay Income Builder. It trades about 0.02 of its total potential returns per unit of risk. Mainstay Income Builder is currently generating about 0.09 per unit of volatility. If you would invest 1,696 in Mainstay Income Builder on August 30, 2024 and sell it today you would earn a total of 437.00 from holding Mainstay Income Builder or generate 25.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shelton Emerging Markets vs. Mainstay Income Builder
Performance |
| Timeline |
| Shelton Emerging Markets |
| Mainstay Income Builder |
Shelton Emerging and Mainstay Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Emerging and Mainstay Income
The main advantage of trading using opposite Shelton Emerging and Mainstay Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Emerging position performs unexpectedly, Mainstay Income 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 Income will offset losses from the drop in Mainstay Income's long position.| Shelton Emerging vs. Vanguard Emerging Markets | Shelton Emerging vs. Vanguard Emerging Markets | Shelton Emerging vs. HUMANA INC | Shelton Emerging vs. Aquagold International |
| Mainstay Income vs. Shelton Emerging Markets | Mainstay Income vs. T Rowe Price | Mainstay Income vs. Federated Emerging Market | Mainstay Income vs. Black Oak Emerging |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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