Correlation Between Miller Convertible and Mainstay Convertible
Can any of the company-specific risk be diversified away by investing in both Miller Convertible and Mainstay Convertible 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 Miller Convertible and Mainstay Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Miller Vertible Bond and Mainstay Vertible Fund, you can compare the effects of market volatilities on Miller Convertible and Mainstay Convertible 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 Miller Convertible with a short position of Mainstay Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Miller Convertible and Mainstay Convertible.
Diversification Opportunities for Miller Convertible and Mainstay Convertible
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Miller and Mainstay is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Miller Vertible Bond and Mainstay Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Convertible and Miller Convertible 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 Miller Vertible Bond are associated (or correlated) with Mainstay Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Convertible has no effect on the direction of Miller Convertible i.e., Miller Convertible and Mainstay Convertible go up and down completely randomly.
Pair Corralation between Miller Convertible and Mainstay Convertible
Assuming the 90 days horizon Miller Convertible is expected to generate 2.19 times less return on investment than Mainstay Convertible. But when comparing it to its historical volatility, Miller Vertible Bond is 1.39 times less risky than Mainstay Convertible. It trades about 0.09 of its potential returns per unit of risk. Mainstay Vertible Fund is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,782 in Mainstay Vertible Fund on August 29, 2024 and sell it today you would earn a total of 165.00 from holding Mainstay Vertible Fund or generate 9.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Miller Vertible Bond vs. Mainstay Vertible Fund
Performance |
| Timeline |
| Miller Vertible Bond |
| Mainstay Convertible |
Miller Convertible and Mainstay Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Miller Convertible and Mainstay Convertible
The main advantage of trading using opposite Miller Convertible and Mainstay Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Miller Convertible position performs unexpectedly, Mainstay Convertible 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 Convertible will offset losses from the drop in Mainstay Convertible's long position.| Miller Convertible vs. Miller Opportunity Trust | Miller Convertible vs. Miller Vertible Bond | Miller Convertible vs. Miller Vertible Bond | Miller Convertible vs. Miller Opportunity Trust |
| Mainstay Convertible vs. Mainstay High Yield | Mainstay Convertible vs. Mainstay Income Builder | Mainstay Convertible vs. Mainstay Map Equity |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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