Correlation Between Invesco Global and Mainstay Income
Can any of the company-specific risk be diversified away by investing in both Invesco Global and Mainstay Income 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 Invesco Global and Mainstay Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Global Infrastructure and Mainstay Income Builder, you can compare the effects of market volatilities on Invesco Global and Mainstay Income 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 Invesco Global with a short position of Mainstay Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Global and Mainstay Income.
Diversification Opportunities for Invesco Global and Mainstay Income
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Invesco and Mainstay is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Global Infrastructure and Mainstay Income Builder in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Income Builder and Invesco Global 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 Invesco Global Infrastructure are associated (or correlated) with Mainstay Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Income Builder has no effect on the direction of Invesco Global i.e., Invesco Global and Mainstay Income go up and down completely randomly.
Pair Corralation between Invesco Global and Mainstay Income
Assuming the 90 days horizon Invesco Global Infrastructure is expected to generate 1.2 times more return on investment than Mainstay Income. However, Invesco Global is 1.2 times more volatile than Mainstay Income Builder. It trades about 0.32 of its potential returns per unit of risk. Mainstay Income Builder is currently generating about 0.12 per unit of risk. If you would invest 1,253 in Invesco Global Infrastructure on August 30, 2024 and sell it today you would earn a total of 54.00 from holding Invesco Global Infrastructure or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Global Infrastructure vs. Mainstay Income Builder
Performance |
| Timeline |
| Invesco Global Infra |
| Mainstay Income Builder |
Invesco Global and Mainstay Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Global and Mainstay Income
The main advantage of trading using opposite Invesco Global and Mainstay Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Global position performs unexpectedly, Mainstay Income 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 Income will offset losses from the drop in Mainstay Income's long position.| Invesco Global vs. Towpath Technology | Invesco Global vs. Global Technology Portfolio | Invesco Global vs. Janus Global Technology | Invesco Global vs. Columbia Global Technology |
| Mainstay Income vs. Capital Income Builder | Mainstay Income vs. Capital Income Builder | Mainstay Income vs. Capital Income Builder | Mainstay Income vs. HUMANA INC |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |