Correlation Between Mainstay Map and Origin Emerging
Can any of the company-specific risk be diversified away by investing in both Mainstay Map and Origin Emerging 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 Mainstay Map and Origin Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Map Equity and Origin Emerging Markets, you can compare the effects of market volatilities on Mainstay Map and Origin Emerging 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 Mainstay Map with a short position of Origin Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Map and Origin Emerging.
Diversification Opportunities for Mainstay Map and Origin Emerging
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mainstay and Origin is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Map Equity and Origin Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Emerging Markets and Mainstay Map 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 Mainstay Map Equity are associated (or correlated) with Origin Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Emerging Markets has no effect on the direction of Mainstay Map i.e., Mainstay Map and Origin Emerging go up and down completely randomly.
Pair Corralation between Mainstay Map and Origin Emerging
Assuming the 90 days horizon Mainstay Map Equity is expected to generate 0.68 times more return on investment than Origin Emerging. However, Mainstay Map Equity is 1.48 times less risky than Origin Emerging. It trades about 0.14 of its potential returns per unit of risk. Origin Emerging Markets is currently generating about -0.01 per unit of risk. If you would invest 2,896 in Mainstay Map Equity on September 3, 2024 and sell it today you would earn a total of 381.00 from holding Mainstay Map Equity or generate 13.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Map Equity vs. Origin Emerging Markets
Performance |
| Timeline |
| Mainstay Map Equity |
| Origin Emerging Markets |
Mainstay Map and Origin Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Map and Origin Emerging
The main advantage of trading using opposite Mainstay Map and Origin Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Map position performs unexpectedly, Origin Emerging 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 Origin Emerging will offset losses from the drop in Origin Emerging's long position.| Mainstay Map vs. Dodge Cox Stock | Mainstay Map vs. American Funds American | Mainstay Map vs. American Funds American | Mainstay Map vs. American Mutual Fund |
| Origin Emerging vs. Blackrock Financial Institutions | Origin Emerging vs. Mesirow Financial Small | Origin Emerging vs. Angel Oak Financial | Origin Emerging vs. Icon Financial Fund |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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