Correlation Between Multisector Bond and Mainstay Map
Can any of the company-specific risk be diversified away by investing in both Multisector Bond and Mainstay Map 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 Multisector Bond and Mainstay Map into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multisector Bond Sma and Mainstay Map Equity, you can compare the effects of market volatilities on Multisector Bond and Mainstay Map 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 Multisector Bond with a short position of Mainstay Map. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multisector Bond and Mainstay Map.
Diversification Opportunities for Multisector Bond and Mainstay Map
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Multisector and Mainstay is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Multisector Bond Sma and Mainstay Map Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Map Equity and Multisector Bond 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 Multisector Bond Sma are associated (or correlated) with Mainstay Map. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Map Equity has no effect on the direction of Multisector Bond i.e., Multisector Bond and Mainstay Map go up and down completely randomly.
Pair Corralation between Multisector Bond and Mainstay Map
Assuming the 90 days horizon Multisector Bond Sma is expected to generate 0.11 times more return on investment than Mainstay Map. However, Multisector Bond Sma is 8.75 times less risky than Mainstay Map. It trades about 0.35 of its potential returns per unit of risk. Mainstay Map Equity is currently generating about -0.24 per unit of risk. If you would invest 1,358 in Multisector Bond Sma on September 13, 2024 and sell it today you would earn a total of 18.00 from holding Multisector Bond Sma or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multisector Bond Sma vs. Mainstay Map Equity
Performance |
| Timeline |
| Multisector Bond Sma |
| Mainstay Map Equity |
Multisector Bond and Mainstay Map Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multisector Bond and Mainstay Map
The main advantage of trading using opposite Multisector Bond and Mainstay Map positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multisector Bond position performs unexpectedly, Mainstay Map 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 Map will offset losses from the drop in Mainstay Map's long position.| Multisector Bond vs. Vanguard Information Technology | Multisector Bond vs. Hennessy Technology Fund | Multisector Bond vs. Janus Global Technology | Multisector Bond vs. Icon Information Technology |
| Mainstay Map vs. Elfun Government Money | Mainstay Map vs. Short Term Government Fund | Mainstay Map vs. Dunham Porategovernment Bond | Mainstay Map vs. Long Term Government 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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