Correlation Between Falcon Focus and Mainstay Government
Can any of the company-specific risk be diversified away by investing in both Falcon Focus and Mainstay Government 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 Government 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 Government Fund, you can compare the effects of market volatilities on Falcon Focus and Mainstay Government 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 Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falcon Focus and Mainstay Government.
Diversification Opportunities for Falcon Focus and Mainstay Government
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 Government Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Government 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 Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Government has no effect on the direction of Falcon Focus i.e., Falcon Focus and Mainstay Government go up and down completely randomly.
Pair Corralation between Falcon Focus and Mainstay Government
Assuming the 90 days horizon Falcon Focus Scv is expected to generate 1.97 times more return on investment than Mainstay Government. However, Falcon Focus is 1.97 times more volatile than Mainstay Government Fund. It trades about 0.1 of its potential returns per unit of risk. Mainstay Government Fund is currently generating about 0.05 per unit of risk. If you would invest 905.00 in Falcon Focus Scv on September 14, 2024 and sell it today you would earn a total of 410.00 from holding Falcon Focus Scv or generate 45.3% 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 Government Fund
Performance |
| Timeline |
| Falcon Focus Scv |
| Mainstay Government |
Falcon Focus and Mainstay Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Falcon Focus and Mainstay Government
The main advantage of trading using opposite Falcon Focus and Mainstay Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falcon Focus position performs unexpectedly, Mainstay Government 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 Government will offset losses from the drop in Mainstay Government's long position.| Falcon Focus vs. Versatile Bond Portfolio | Falcon Focus vs. Bbh Intermediate Municipal | Falcon Focus vs. Pace High Yield | Falcon Focus vs. The National Tax Free |
| Mainstay Government vs. Abr 7525 Volatility | Mainstay Government vs. Falcon Focus Scv | Mainstay Government vs. Rbc Microcap Value | Mainstay Government vs. Rbb Fund |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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