Correlation Between International Investors and Mainstay High
Can any of the company-specific risk be diversified away by investing in both International Investors and Mainstay High 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 International Investors and Mainstay High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Investors Gold and Mainstay High Yield, you can compare the effects of market volatilities on International Investors and Mainstay High 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 International Investors with a short position of Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Investors and Mainstay High.
Diversification Opportunities for International Investors and Mainstay High
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Mainstay is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding International Investors Gold and Mainstay High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay High Yield and International Investors 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 International Investors Gold are associated (or correlated) with Mainstay High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay High Yield has no effect on the direction of International Investors i.e., International Investors and Mainstay High go up and down completely randomly.
Pair Corralation between International Investors and Mainstay High
Assuming the 90 days horizon International Investors Gold is expected to generate 9.38 times more return on investment than Mainstay High. However, International Investors is 9.38 times more volatile than Mainstay High Yield. It trades about 0.1 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.39 per unit of risk. If you would invest 1,181 in International Investors Gold on September 12, 2024 and sell it today you would earn a total of 39.00 from holding International Investors Gold or generate 3.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
International Investors Gold vs. Mainstay High Yield
Performance |
| Timeline |
| International Investors |
| Mainstay High Yield |
International Investors and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Investors and Mainstay High
The main advantage of trading using opposite International Investors and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Investors position performs unexpectedly, Mainstay High 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 High will offset losses from the drop in Mainstay High's long position.| International Investors vs. Washington Mutual Investors | International Investors vs. Alternative Asset Allocation | International Investors vs. T Rowe Price | International Investors vs. Dodge Cox Stock |
| Mainstay High vs. Gold And Precious | Mainstay High vs. Sprott Gold Equity | Mainstay High vs. Vy Goldman Sachs | Mainstay High vs. International Investors Gold |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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