Correlation Between Mutual Of and New York
Can any of the company-specific risk be diversified away by investing in both Mutual Of and New York 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 New York 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 New York Bond, you can compare the effects of market volatilities on Mutual Of and New York 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 New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mutual Of and New York.
Diversification Opportunities for Mutual Of and New York
Good diversification
The 3 months correlation between Mutual and New is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Mutual Of America and New York Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Bond 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 New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Bond has no effect on the direction of Mutual Of i.e., Mutual Of and New York go up and down completely randomly.
Pair Corralation between Mutual Of and New York
Assuming the 90 days horizon Mutual Of America is expected to generate 4.04 times more return on investment than New York. However, Mutual Of is 4.04 times more volatile than New York Bond. It trades about 0.28 of its potential returns per unit of risk. New York Bond is currently generating about 0.27 per unit of risk. If you would invest 1,493 in Mutual Of America on September 1, 2024 and sell it today you would earn a total of 151.00 from holding Mutual Of America or generate 10.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mutual Of America vs. New York Bond
Performance |
| Timeline |
| Mutual Of America |
| New York Bond |
Mutual Of and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mutual Of and New York
The main advantage of trading using opposite Mutual Of and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mutual Of position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.| Mutual Of vs. Gamco Global Telecommunications | Mutual Of vs. Bbh Intermediate Municipal | Mutual Of vs. Alliancebernstein National Municipal | Mutual Of vs. T Rowe Price |
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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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