Correlation Between Huber Capital and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Huber Capital and Mainstay Large 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 Huber Capital and Mainstay Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huber Capital Diversified and Mainstay Large Cap, you can compare the effects of market volatilities on Huber Capital and Mainstay Large 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 Huber Capital with a short position of Mainstay Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huber Capital and Mainstay Large.
Diversification Opportunities for Huber Capital and Mainstay Large
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Huber and Mainstay is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Huber Capital Diversified and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap and Huber Capital 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 Huber Capital Diversified are associated (or correlated) with Mainstay Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of Huber Capital i.e., Huber Capital and Mainstay Large go up and down completely randomly.
Pair Corralation between Huber Capital and Mainstay Large
Assuming the 90 days horizon Huber Capital is expected to generate 1.15 times less return on investment than Mainstay Large. But when comparing it to its historical volatility, Huber Capital Diversified is 1.62 times less risky than Mainstay Large. It trades about 0.08 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 871.00 in Mainstay Large Cap on November 27, 2024 and sell it today you would earn a total of 329.00 from holding Mainstay Large Cap or generate 37.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huber Capital Diversified vs. Mainstay Large Cap
Performance |
| Timeline |
| Huber Capital Diversified |
| Mainstay Large Cap |
Huber Capital and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huber Capital and Mainstay Large
The main advantage of trading using opposite Huber Capital and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huber Capital position performs unexpectedly, Mainstay Large 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 Large will offset losses from the drop in Mainstay Large's long position.| Huber Capital vs. Principal Lifetime Hybrid | Huber Capital vs. Growth Allocation Fund | Huber Capital vs. Gmo Asset Allocation | Huber Capital vs. Balanced Allocation Fund |
| Mainstay Large vs. Angel Oak Financial | Mainstay Large vs. Financial Services Portfolio | Mainstay Large vs. 1919 Financial Services | Mainstay Large vs. Vanguard Financials Index |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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