Correlation Between Gabelli Convertible and Mainstay Moderate
Can any of the company-specific risk be diversified away by investing in both Gabelli Convertible and Mainstay Moderate 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 Gabelli Convertible and Mainstay Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Convertible And and Mainstay Moderate Allocation, you can compare the effects of market volatilities on Gabelli Convertible and Mainstay Moderate 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 Gabelli Convertible with a short position of Mainstay Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Convertible and Mainstay Moderate.
Diversification Opportunities for Gabelli Convertible and Mainstay Moderate
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gabelli and Mainstay is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Convertible And and Mainstay Moderate Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Moderate and Gabelli Convertible 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 Gabelli Convertible And are associated (or correlated) with Mainstay Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Moderate has no effect on the direction of Gabelli Convertible i.e., Gabelli Convertible and Mainstay Moderate go up and down completely randomly.
Pair Corralation between Gabelli Convertible and Mainstay Moderate
Considering the 90-day investment horizon Gabelli Convertible is expected to generate 1.61 times less return on investment than Mainstay Moderate. In addition to that, Gabelli Convertible is 2.3 times more volatile than Mainstay Moderate Allocation. It trades about 0.03 of its total potential returns per unit of risk. Mainstay Moderate Allocation is currently generating about 0.11 per unit of volatility. If you would invest 1,238 in Mainstay Moderate Allocation on September 4, 2024 and sell it today you would earn a total of 255.00 from holding Mainstay Moderate Allocation or generate 20.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Convertible And vs. Mainstay Moderate Allocation
Performance |
| Timeline |
| Gabelli Convertible And |
| Mainstay Moderate |
Gabelli Convertible and Mainstay Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Convertible and Mainstay Moderate
The main advantage of trading using opposite Gabelli Convertible and Mainstay Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Convertible position performs unexpectedly, Mainstay Moderate 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 Moderate will offset losses from the drop in Mainstay Moderate's long position.| Gabelli Convertible vs. Gabelli Global Small | Gabelli Convertible vs. MFS Investment Grade | Gabelli Convertible vs. Eaton Vance National | Gabelli Convertible vs. GAMCO Natural Resources |
| Mainstay Moderate vs. Lgm Risk Managed | Mainstay Moderate vs. Multimanager Lifestyle Aggressive | Mainstay Moderate vs. Calvert High Yield | Mainstay Moderate vs. Ab High Income |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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