Correlation Between Hunter Small and Mainstay
Can any of the company-specific risk be diversified away by investing in both Hunter Small and Mainstay 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 Hunter Small and Mainstay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hunter Small Cap and Mainstay Sp 500, you can compare the effects of market volatilities on Hunter Small and Mainstay 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 Hunter Small with a short position of Mainstay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunter Small and Mainstay.
Diversification Opportunities for Hunter Small and Mainstay
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hunter and Mainstay is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hunter Small Cap and Mainstay Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Sp 500 and Hunter Small 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 Hunter Small Cap are associated (or correlated) with Mainstay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Sp 500 has no effect on the direction of Hunter Small i.e., Hunter Small and Mainstay go up and down completely randomly.
Pair Corralation between Hunter Small and Mainstay
Assuming the 90 days horizon Hunter Small Cap is expected to generate 1.02 times more return on investment than Mainstay. However, Hunter Small is 1.02 times more volatile than Mainstay Sp 500. It trades about 0.17 of its potential returns per unit of risk. Mainstay Sp 500 is currently generating about 0.1 per unit of risk. If you would invest 1,238 in Hunter Small Cap on November 4, 2024 and sell it today you would earn a total of 36.00 from holding Hunter Small Cap or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunter Small Cap vs. Mainstay Sp 500
Performance |
| Timeline |
| Hunter Small Cap |
| Mainstay Sp 500 |
Hunter Small and Mainstay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunter Small and Mainstay
The main advantage of trading using opposite Hunter Small and Mainstay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunter Small position performs unexpectedly, Mainstay 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 will offset losses from the drop in Mainstay's long position.| Hunter Small vs. James Alpha Structured | Hunter Small vs. Calamos Antetokounmpo Sustainable | Hunter Small vs. Ultra Short Fixed Income | Hunter Small vs. Vanguard Wellington Fund |
| Mainstay vs. Energy Services Fund | Mainstay vs. Icon Natural Resources | Mainstay vs. Pimco Energy Tactical | Mainstay vs. Franklin Natural Resources |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |