Correlation Between Prudential Short and Mainstay Cushing
Can any of the company-specific risk be diversified away by investing in both Prudential Short and Mainstay Cushing 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 Prudential Short and Mainstay Cushing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prudential Short Duration and Mainstay Cushing Mlp, you can compare the effects of market volatilities on Prudential Short and Mainstay Cushing 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 Prudential Short with a short position of Mainstay Cushing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Short and Mainstay Cushing.
Diversification Opportunities for Prudential Short and Mainstay Cushing
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Prudential and Mainstay is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Short Duration and Mainstay Cushing Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Cushing Mlp and Prudential Short 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 Prudential Short Duration are associated (or correlated) with Mainstay Cushing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Cushing Mlp has no effect on the direction of Prudential Short i.e., Prudential Short and Mainstay Cushing go up and down completely randomly.
Pair Corralation between Prudential Short and Mainstay Cushing
Assuming the 90 days horizon Prudential Short is expected to generate 10.36 times less return on investment than Mainstay Cushing. But when comparing it to its historical volatility, Prudential Short Duration is 4.87 times less risky than Mainstay Cushing. It trades about 0.29 of its potential returns per unit of risk. Mainstay Cushing Mlp is currently generating about 0.61 of returns per unit of risk over similar time horizon. If you would invest 1,218 in Mainstay Cushing Mlp on October 23, 2024 and sell it today you would earn a total of 126.00 from holding Mainstay Cushing Mlp or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prudential Short Duration vs. Mainstay Cushing Mlp
Performance |
| Timeline |
| Prudential Short Duration |
| Mainstay Cushing Mlp |
Prudential Short and Mainstay Cushing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential Short and Mainstay Cushing
The main advantage of trading using opposite Prudential Short and Mainstay Cushing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential Short position performs unexpectedly, Mainstay Cushing 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 Cushing will offset losses from the drop in Mainstay Cushing's long position.| Prudential Short vs. Small Cap Growth Profund | Prudential Short vs. Applied Finance Explorer | Prudential Short vs. Valic Company I | Prudential Short vs. Ab Small Cap |
| Mainstay Cushing vs. Blrc Sgy Mnp | Mainstay Cushing vs. Morningstar Defensive Bond | Mainstay Cushing vs. Multisector Bond Sma | Mainstay Cushing vs. Dws Government Money |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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