Correlation Between Invesco Gold and Mainstay Equity
Can any of the company-specific risk be diversified away by investing in both Invesco Gold and Mainstay Equity 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 Equity 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 Equity Etf, you can compare the effects of market volatilities on Invesco Gold and Mainstay Equity 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 Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Gold and Mainstay Equity.
Diversification Opportunities for Invesco Gold and Mainstay Equity
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Invesco and Mainstay is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Gold Special and Mainstay Equity Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Equity Etf 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 Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Equity Etf has no effect on the direction of Invesco Gold i.e., Invesco Gold and Mainstay Equity go up and down completely randomly.
Pair Corralation between Invesco Gold and Mainstay Equity
Assuming the 90 days horizon Invesco Gold is expected to generate 1.05 times less return on investment than Mainstay Equity. In addition to that, Invesco Gold is 2.2 times more volatile than Mainstay Equity Etf. It trades about 0.04 of its total potential returns per unit of risk. Mainstay Equity Etf is currently generating about 0.09 per unit of volatility. If you would invest 1,264 in Mainstay Equity Etf on August 31, 2024 and sell it today you would earn a total of 373.00 from holding Mainstay Equity Etf or generate 29.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Invesco Gold Special vs. Mainstay Equity Etf
Performance |
| Timeline |
| Invesco Gold Special |
| Mainstay Equity Etf |
Invesco Gold and Mainstay Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Gold and Mainstay Equity
The main advantage of trading using opposite Invesco Gold and Mainstay Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Gold position performs unexpectedly, Mainstay Equity 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 Equity will offset losses from the drop in Mainstay Equity's long position.| Invesco Gold vs. Calvert Moderate Allocation | Invesco Gold vs. Multimanager Lifestyle Moderate | Invesco Gold vs. Dimensional Retirement Income | Invesco Gold vs. Saat Moderate Strategy |
| Mainstay Equity vs. Great West Goldman Sachs | Mainstay Equity vs. Invesco Gold Special | Mainstay Equity vs. International Investors Gold | Mainstay Equity 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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