Correlation Between Fabxx and Mainstay New
Can any of the company-specific risk be diversified away by investing in both Fabxx and Mainstay New 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 Fabxx and Mainstay New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fabxx and Mainstay New York, you can compare the effects of market volatilities on Fabxx and Mainstay New 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 Fabxx with a short position of Mainstay New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fabxx and Mainstay New.
Diversification Opportunities for Fabxx and Mainstay New
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fabxx and Mainstay is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Fabxx and Mainstay New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay New York and Fabxx 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 Fabxx are associated (or correlated) with Mainstay New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay New York has no effect on the direction of Fabxx i.e., Fabxx and Mainstay New go up and down completely randomly.
Pair Corralation between Fabxx and Mainstay New
Assuming the 90 days horizon Fabxx is expected to under-perform the Mainstay New. In addition to that, Fabxx is 35.62 times more volatile than Mainstay New York. It trades about -0.23 of its total potential returns per unit of risk. Mainstay New York is currently generating about 0.19 per unit of volatility. If you would invest 966.00 in Mainstay New York on September 5, 2024 and sell it today you would earn a total of 15.00 from holding Mainstay New York or generate 1.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fabxx vs. Mainstay New York
Performance |
| Timeline |
| Fabxx |
| Mainstay New York |
Fabxx and Mainstay New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fabxx and Mainstay New
The main advantage of trading using opposite Fabxx and Mainstay New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fabxx position performs unexpectedly, Mainstay New 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 New will offset losses from the drop in Mainstay New's long position.| Fabxx vs. Blackrock Conservative Prprdptfinstttnl | Fabxx vs. Jhancock Diversified Macro | Fabxx vs. Adams Diversified Equity | Fabxx vs. Pgim Conservative Retirement |
| Mainstay New vs. Massmutual Select Diversified | Mainstay New vs. American Funds Conservative | Mainstay New vs. Aqr Diversified Arbitrage | Mainstay New vs. Lord Abbett Diversified |
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 Stocks Directory module to find actively traded stocks across global markets.
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