Correlation Between Mutual Of and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Mutual Of 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 Mutual Of and Mainstay Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mutual Of America and Mainstay Large Cap, you can compare the effects of market volatilities on Mutual Of 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 Mutual Of with a short position of Mainstay Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mutual Of and Mainstay Large.
Diversification Opportunities for Mutual Of and Mainstay Large
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mutual and Mainstay is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Mutual Of America 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 Mutual Of 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 Mutual Of America 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 Mutual Of i.e., Mutual Of and Mainstay Large go up and down completely randomly.
Pair Corralation between Mutual Of and Mainstay Large
Assuming the 90 days horizon Mutual Of is expected to generate 1.65 times less return on investment than Mainstay Large. But when comparing it to its historical volatility, Mutual Of America is 1.23 times less risky than Mainstay Large. It trades about 0.04 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 671.00 in Mainstay Large Cap on September 15, 2024 and sell it today you would earn a total of 265.00 from holding Mainstay Large Cap or generate 39.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mutual Of America vs. Mainstay Large Cap
Performance |
| Timeline |
| Mutual Of America |
| Mainstay Large Cap |
Mutual Of and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mutual Of and Mainstay Large
The main advantage of trading using opposite Mutual Of and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mutual Of 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.| Mutual Of vs. Mutual Of America | Mutual Of vs. Mutual Of America | Mutual Of vs. Mutual Of America | Mutual Of vs. Mutual Of America |
| Mainstay Large vs. Boston Partners Small | Mainstay Large vs. Goldman Sachs Small | Mainstay Large vs. Lsv Small Cap | Mainstay Large vs. Mutual Of America |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |