Correlation Between Guidepath(r) Managed and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Guidepath(r) 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 Guidepath(r) 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 Guidepath Managed Futures and Mainstay High Yield, you can compare the effects of market volatilities on Guidepath(r) 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 Guidepath(r) Managed with a short position of Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidepath(r) Managed and Mainstay High.
Diversification Opportunities for Guidepath(r) Managed and Mainstay High
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guidepath(r) and Mainstay is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Guidepath Managed Futures 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 Guidepath(r) 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 Guidepath Managed Futures 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 Guidepath(r) Managed i.e., Guidepath(r) Managed and Mainstay High go up and down completely randomly.
Pair Corralation between Guidepath(r) Managed and Mainstay High
Assuming the 90 days horizon Guidepath Managed Futures is expected to generate 1.38 times more return on investment than Mainstay High. However, Guidepath(r) Managed is 1.38 times more volatile than Mainstay High Yield. It trades about 0.14 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.17 per unit of risk. If you would invest 768.00 in Guidepath Managed Futures on September 1, 2024 and sell it today you would earn a total of 13.00 from holding Guidepath Managed Futures or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Guidepath Managed Futures vs. Mainstay High Yield
Performance |
| Timeline |
| Guidepath Managed Futures |
| Mainstay High Yield |
Guidepath(r) Managed and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidepath(r) Managed and Mainstay High
The main advantage of trading using opposite Guidepath(r) Managed and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidepath(r) 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.| Guidepath(r) Managed vs. Pimco Income Strategy | Guidepath(r) Managed vs. American Balanced Fund | Guidepath(r) Managed vs. Nuveen Real Asset | Guidepath(r) Managed vs. New Economy Fund |
| Mainstay High vs. Cref Inflation Linked Bond | Mainstay High vs. Guidepath Managed Futures | Mainstay High vs. Arrow Managed Futures | Mainstay High vs. American Funds Inflation |
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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