Correlation Between Icon Natural and Mainstay Pinestone
Can any of the company-specific risk be diversified away by investing in both Icon Natural and Mainstay Pinestone 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 Icon Natural and Mainstay Pinestone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icon Natural Resources and Mainstay Pinestone International, you can compare the effects of market volatilities on Icon Natural and Mainstay Pinestone 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 Icon Natural with a short position of Mainstay Pinestone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Natural and Mainstay Pinestone.
Diversification Opportunities for Icon Natural and Mainstay Pinestone
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Icon and Mainstay is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Icon Natural Resources and Mainstay Pinestone Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Pinestone and Icon Natural 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 Icon Natural Resources are associated (or correlated) with Mainstay Pinestone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Pinestone has no effect on the direction of Icon Natural i.e., Icon Natural and Mainstay Pinestone go up and down completely randomly.
Pair Corralation between Icon Natural and Mainstay Pinestone
Assuming the 90 days horizon Icon Natural Resources is expected to generate 1.45 times more return on investment than Mainstay Pinestone. However, Icon Natural is 1.45 times more volatile than Mainstay Pinestone International. It trades about 0.03 of its potential returns per unit of risk. Mainstay Pinestone International is currently generating about -0.01 per unit of risk. If you would invest 1,775 in Icon Natural Resources on September 2, 2024 and sell it today you would earn a total of 72.00 from holding Icon Natural Resources or generate 4.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Natural Resources vs. Mainstay Pinestone Internation
Performance |
| Timeline |
| Icon Natural Resources |
| Mainstay Pinestone |
Icon Natural and Mainstay Pinestone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Natural and Mainstay Pinestone
The main advantage of trading using opposite Icon Natural and Mainstay Pinestone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Natural position performs unexpectedly, Mainstay Pinestone 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 Pinestone will offset losses from the drop in Mainstay Pinestone's long position.| Icon Natural vs. Icon Financial Fund | Icon Natural vs. Dreyfus Natural Resources | Icon Natural vs. Icon Natural Resources | Icon Natural vs. Icon Information Technology |
| Mainstay Pinestone vs. Mainstay High Yield | Mainstay Pinestone vs. Mainstay Tax Free | Mainstay Pinestone vs. Mainstay Income Builder | Mainstay Pinestone vs. Mainstay Large Cap |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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