Correlation Between Fidelity Managed and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Fidelity Managed and Mainstay High 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 Fidelity Managed and Mainstay High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Managed Retirement and Mainstay High Yield, you can compare the effects of market volatilities on Fidelity Managed and Mainstay High 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 Fidelity Managed with a short position of Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Managed and Mainstay High.
Diversification Opportunities for Fidelity Managed and Mainstay High
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fidelity and Mainstay is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Managed Retirement and Mainstay High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay High Yield and Fidelity Managed 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 Fidelity Managed Retirement are associated (or correlated) with Mainstay High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay High Yield has no effect on the direction of Fidelity Managed i.e., Fidelity Managed and Mainstay High go up and down completely randomly.
Pair Corralation between Fidelity Managed and Mainstay High
Assuming the 90 days horizon Fidelity Managed is expected to generate 1.04 times less return on investment than Mainstay High. In addition to that, Fidelity Managed is 1.7 times more volatile than Mainstay High Yield. It trades about 0.08 of its total potential returns per unit of risk. Mainstay High Yield is currently generating about 0.15 per unit of volatility. If you would invest 440.00 in Mainstay High Yield on September 2, 2024 and sell it today you would earn a total of 83.00 from holding Mainstay High Yield or generate 18.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Managed Retirement vs. Mainstay High Yield
Performance |
| Timeline |
| Fidelity Managed Ret |
| Mainstay High Yield |
Fidelity Managed and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Managed and Mainstay High
The main advantage of trading using opposite Fidelity Managed and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Managed position performs unexpectedly, Mainstay High 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 High will offset losses from the drop in Mainstay High's long position.| Fidelity Managed vs. Ab Impact Municipal | Fidelity Managed vs. Pace Municipal Fixed | Fidelity Managed vs. The National Tax Free | Fidelity Managed vs. Alliancebernstein National Municipal |
| Mainstay High vs. Mainstay Tax Free | Mainstay High vs. Mainstay Large Cap | Mainstay High vs. Mainstay Large Cap | Mainstay High vs. Mainstay Large Cap |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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