Correlation Between Invesco Rochester and Mainstay New
Can any of the company-specific risk be diversified away by investing in both Invesco Rochester and Mainstay New 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 Rochester and Mainstay New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Rochester New and Mainstay New York, you can compare the effects of market volatilities on Invesco Rochester and Mainstay New 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 Rochester with a short position of Mainstay New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Rochester and Mainstay New.
Diversification Opportunities for Invesco Rochester and Mainstay New
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Invesco and Mainstay is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Rochester New and Mainstay New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay New York and Invesco Rochester 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 Rochester New are associated (or correlated) with Mainstay New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay New York has no effect on the direction of Invesco Rochester i.e., Invesco Rochester and Mainstay New go up and down completely randomly.
Pair Corralation between Invesco Rochester and Mainstay New
Assuming the 90 days horizon Invesco Rochester New is expected to generate 1.44 times more return on investment than Mainstay New. However, Invesco Rochester is 1.44 times more volatile than Mainstay New York. It trades about 0.06 of its potential returns per unit of risk. Mainstay New York is currently generating about 0.08 per unit of risk. If you would invest 1,414 in Invesco Rochester New on September 2, 2024 and sell it today you would earn a total of 133.00 from holding Invesco Rochester New or generate 9.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Rochester New vs. Mainstay New York
Performance |
| Timeline |
| Invesco Rochester New |
| Mainstay New York |
Invesco Rochester and Mainstay New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Rochester and Mainstay New
The main advantage of trading using opposite Invesco Rochester and Mainstay New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Rochester position performs unexpectedly, Mainstay New 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 New will offset losses from the drop in Mainstay New's long position.| Invesco Rochester vs. Rationalpier 88 Convertible | Invesco Rochester vs. Thrivent Income Fund | Invesco Rochester vs. Calamos Dynamic Convertible | Invesco Rochester vs. Inflation Protected Bond Fund |
| Mainstay New vs. Huber Capital Equity | Mainstay New vs. Small Cap Equity | Mainstay New vs. Ultra Short Fixed Income | Mainstay New vs. Cutler Equity |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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