Correlation Between Falcon Focus and Mainstay Cornerstone
Can any of the company-specific risk be diversified away by investing in both Falcon Focus and Mainstay Cornerstone 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 Falcon Focus and Mainstay Cornerstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Falcon Focus Scv and Mainstay Nerstone Growth, you can compare the effects of market volatilities on Falcon Focus and Mainstay Cornerstone 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 Falcon Focus with a short position of Mainstay Cornerstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falcon Focus and Mainstay Cornerstone.
Diversification Opportunities for Falcon Focus and Mainstay Cornerstone
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Falcon and Mainstay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Falcon Focus Scv and Mainstay Nerstone Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Nerstone Growth and Falcon Focus 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 Falcon Focus Scv are associated (or correlated) with Mainstay Cornerstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Nerstone Growth has no effect on the direction of Falcon Focus i.e., Falcon Focus and Mainstay Cornerstone go up and down completely randomly.
Pair Corralation between Falcon Focus and Mainstay Cornerstone
Assuming the 90 days horizon Falcon Focus is expected to generate 2.73 times less return on investment than Mainstay Cornerstone. But when comparing it to its historical volatility, Falcon Focus Scv is 1.82 times less risky than Mainstay Cornerstone. It trades about 0.05 of its potential returns per unit of risk. Mainstay Nerstone Growth is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,610 in Mainstay Nerstone Growth on September 3, 2024 and sell it today you would earn a total of 485.00 from holding Mainstay Nerstone Growth or generate 10.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Falcon Focus Scv vs. Mainstay Nerstone Growth
Performance |
| Timeline |
| Falcon Focus Scv |
| Mainstay Nerstone Growth |
Falcon Focus and Mainstay Cornerstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Falcon Focus and Mainstay Cornerstone
The main advantage of trading using opposite Falcon Focus and Mainstay Cornerstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falcon Focus position performs unexpectedly, Mainstay Cornerstone 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 Cornerstone will offset losses from the drop in Mainstay Cornerstone's long position.| Falcon Focus vs. Blackrock Inflation Protected | Falcon Focus vs. T Rowe Price | Falcon Focus vs. Oklahoma College Savings | Falcon Focus vs. Inflation Protected Bond Fund |
| Mainstay Cornerstone vs. Europac Gold Fund | Mainstay Cornerstone vs. Gabelli Gold Fund | Mainstay Cornerstone vs. Invesco Gold Special | Mainstay Cornerstone vs. Sprott Gold Equity |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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