Correlation Between Alternative Asset and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Alternative Asset and Mainstay Large 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 Alternative Asset and Mainstay Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alternative Asset Allocation and Mainstay Large Cap, you can compare the effects of market volatilities on Alternative Asset and Mainstay Large 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 Alternative Asset with a short position of Mainstay Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alternative Asset and Mainstay Large.
Diversification Opportunities for Alternative Asset and Mainstay Large
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alternative and Mainstay is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Alternative Asset Allocation and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap and Alternative Asset 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 Alternative Asset Allocation are associated (or correlated) with Mainstay Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of Alternative Asset i.e., Alternative Asset and Mainstay Large go up and down completely randomly.
Pair Corralation between Alternative Asset and Mainstay Large
Assuming the 90 days horizon Alternative Asset Allocation is expected to generate 0.14 times more return on investment than Mainstay Large. However, Alternative Asset Allocation is 7.38 times less risky than Mainstay Large. It trades about 0.12 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about 0.01 per unit of risk. If you would invest 1,505 in Alternative Asset Allocation on November 3, 2024 and sell it today you would earn a total of 108.00 from holding Alternative Asset Allocation or generate 7.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alternative Asset Allocation vs. Mainstay Large Cap
Performance |
| Timeline |
| Alternative Asset |
| Mainstay Large Cap |
Alternative Asset and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alternative Asset and Mainstay Large
The main advantage of trading using opposite Alternative Asset and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alternative Asset position performs unexpectedly, Mainstay Large 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 Large will offset losses from the drop in Mainstay Large's long position.| Alternative Asset vs. Allianzgi Convertible Income | Alternative Asset vs. Virtus Convertible | Alternative Asset vs. Advent Claymore Convertible | Alternative Asset vs. Columbia Convertible Securities |
| Mainstay Large vs. Multisector Bond Sma | Mainstay Large vs. Rbc Bluebay Emerging | Mainstay Large vs. Ambrus Core Bond | Mainstay Large vs. Ultra Short Fixed Income |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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