Correlation Between Huber Capital and Mainstay Map
Can any of the company-specific risk be diversified away by investing in both Huber Capital and Mainstay Map 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 Map 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 Map Equity, you can compare the effects of market volatilities on Huber Capital and Mainstay Map 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 Map. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huber Capital and Mainstay Map.
Diversification Opportunities for Huber Capital and Mainstay Map
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Huber and Mainstay is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Huber Capital Diversified and Mainstay Map Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Map Equity 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 Map. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Map Equity has no effect on the direction of Huber Capital i.e., Huber Capital and Mainstay Map go up and down completely randomly.
Pair Corralation between Huber Capital and Mainstay Map
Assuming the 90 days horizon Huber Capital Diversified is expected to under-perform the Mainstay Map. In addition to that, Huber Capital is 1.49 times more volatile than Mainstay Map Equity. It trades about -0.14 of its total potential returns per unit of risk. Mainstay Map Equity is currently generating about -0.17 per unit of volatility. If you would invest 2,102 in Mainstay Map Equity on November 27, 2024 and sell it today you would lose (38.00) from holding Mainstay Map Equity or give up 1.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huber Capital Diversified vs. Mainstay Map Equity
Performance |
| Timeline |
| Huber Capital Diversified |
| Mainstay Map Equity |
Huber Capital and Mainstay Map Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huber Capital and Mainstay Map
The main advantage of trading using opposite Huber Capital and Mainstay Map positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huber Capital position performs unexpectedly, Mainstay Map 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 Map will offset losses from the drop in Mainstay Map'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 Map vs. Us Government Securities | Mainstay Map vs. Virtus Seix Government | Mainstay Map vs. Federated Government Income | Mainstay Map vs. Us Government Securities |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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