Correlation Between Jhancock Diversified and Mainstay Government
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified and Mainstay Government 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 Jhancock Diversified and Mainstay Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Diversified Macro and Mainstay Government Fund, you can compare the effects of market volatilities on Jhancock Diversified and Mainstay Government 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 Jhancock Diversified with a short position of Mainstay Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Mainstay Government.
Diversification Opportunities for Jhancock Diversified and Mainstay Government
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jhancock and Mainstay is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Mainstay Government Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Government and Jhancock Diversified 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 Jhancock Diversified Macro are associated (or correlated) with Mainstay Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Government has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and Mainstay Government go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Mainstay Government
Assuming the 90 days horizon Jhancock Diversified Macro is expected to under-perform the Mainstay Government. In addition to that, Jhancock Diversified is 1.9 times more volatile than Mainstay Government Fund. It trades about -0.09 of its total potential returns per unit of risk. Mainstay Government Fund is currently generating about 0.08 per unit of volatility. If you would invest 731.00 in Mainstay Government Fund on September 1, 2024 and sell it today you would earn a total of 26.00 from holding Mainstay Government Fund or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Diversified Macro vs. Mainstay Government Fund
Performance |
| Timeline |
| Jhancock Diversified |
| Mainstay Government |
Jhancock Diversified and Mainstay Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Mainstay Government
The main advantage of trading using opposite Jhancock Diversified and Mainstay Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified position performs unexpectedly, Mainstay Government 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 Government will offset losses from the drop in Mainstay Government's long position.| Jhancock Diversified vs. Ab Small Cap | Jhancock Diversified vs. Baird Smallmid Cap | Jhancock Diversified vs. Champlain Small | Jhancock Diversified vs. Small Midcap Dividend Income |
| Mainstay Government vs. Mainstay Tax Free | Mainstay Government vs. Mainstay Large Cap | Mainstay Government vs. Mainstay Large Cap | Mainstay Government vs. Mainstay Large Cap |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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