Correlation Between Invesco Gold and Mainstay Fiera
Can any of the company-specific risk be diversified away by investing in both Invesco Gold and Mainstay Fiera 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 Invesco Gold and Mainstay Fiera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Gold Special and Mainstay Fiera Smid, you can compare the effects of market volatilities on Invesco Gold and Mainstay Fiera 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 Invesco Gold with a short position of Mainstay Fiera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Gold and Mainstay Fiera.
Diversification Opportunities for Invesco Gold and Mainstay Fiera
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Invesco and Mainstay is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Gold Special and Mainstay Fiera Smid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Fiera Smid and Invesco Gold 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 Invesco Gold Special are associated (or correlated) with Mainstay Fiera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Fiera Smid has no effect on the direction of Invesco Gold i.e., Invesco Gold and Mainstay Fiera go up and down completely randomly.
Pair Corralation between Invesco Gold and Mainstay Fiera
Assuming the 90 days horizon Invesco Gold Special is expected to under-perform the Mainstay Fiera. In addition to that, Invesco Gold is 1.61 times more volatile than Mainstay Fiera Smid. It trades about -0.12 of its total potential returns per unit of risk. Mainstay Fiera Smid is currently generating about 0.37 per unit of volatility. If you would invest 1,653 in Mainstay Fiera Smid on September 4, 2024 and sell it today you would earn a total of 164.00 from holding Mainstay Fiera Smid or generate 9.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Gold Special vs. Mainstay Fiera Smid
Performance |
| Timeline |
| Invesco Gold Special |
| Mainstay Fiera Smid |
Invesco Gold and Mainstay Fiera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Gold and Mainstay Fiera
The main advantage of trading using opposite Invesco Gold and Mainstay Fiera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Gold position performs unexpectedly, Mainstay Fiera 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 Fiera will offset losses from the drop in Mainstay Fiera's long position.| Invesco Gold vs. Massmutual Select Diversified | Invesco Gold vs. Ep Emerging Markets | Invesco Gold vs. Fundvantage Trust | Invesco Gold vs. Legg Mason Partners |
| Mainstay Fiera vs. Pace Smallmedium Growth | Mainstay Fiera vs. Artisan Small Cap | Mainstay Fiera vs. Tfa Alphagen Growth | Mainstay Fiera vs. Small Pany Growth |
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 CEOs Directory module to screen CEOs from public companies around the world.
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