Correlation Between American Funds and Mainstay Pinestone
Can any of the company-specific risk be diversified away by investing in both American Funds and Mainstay Pinestone 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 American Funds and Mainstay Pinestone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Funds New and Mainstay Pinestone Global, you can compare the effects of market volatilities on American Funds and Mainstay Pinestone 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 American Funds with a short position of Mainstay Pinestone. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Mainstay Pinestone.
Diversification Opportunities for American Funds and Mainstay Pinestone
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between American and Mainstay is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding American Funds New and Mainstay Pinestone Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Pinestone Global and American Funds 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 American Funds New are associated (or correlated) with Mainstay Pinestone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Pinestone Global has no effect on the direction of American Funds i.e., American Funds and Mainstay Pinestone go up and down completely randomly.
Pair Corralation between American Funds and Mainstay Pinestone
Assuming the 90 days horizon American Funds New is expected to generate 1.25 times more return on investment than Mainstay Pinestone. However, American Funds is 1.25 times more volatile than Mainstay Pinestone Global. It trades about 0.08 of its potential returns per unit of risk. Mainstay Pinestone Global is currently generating about 0.08 per unit of risk. If you would invest 4,953 in American Funds New on August 31, 2024 and sell it today you would earn a total of 1,617 from holding American Funds New or generate 32.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 80.71% |
| Values | Daily Returns |
American Funds New vs. Mainstay Pinestone Global
Performance |
| Timeline |
| American Funds New |
| Mainstay Pinestone Global |
American Funds and Mainstay Pinestone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Mainstay Pinestone
The main advantage of trading using opposite American Funds and Mainstay Pinestone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds position performs unexpectedly, Mainstay Pinestone 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 Pinestone will offset losses from the drop in Mainstay Pinestone's long position.| American Funds vs. Jhancock Diversified Macro | American Funds vs. Oppenheimer International Diversified | American Funds vs. Pgim Conservative Retirement | American Funds vs. Aqr Diversified Arbitrage |
| Mainstay Pinestone vs. Goldman Sachs Real | Mainstay Pinestone vs. Us Real Estate | Mainstay Pinestone vs. Tiaa Cref Real Estate | Mainstay Pinestone vs. Jhancock Real Estate |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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