Correlation Between Mainstay Convertible and Ab Sustainable
Can any of the company-specific risk be diversified away by investing in both Mainstay Convertible and Ab Sustainable 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 Convertible and Ab Sustainable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Vertible Fund and Ab Sustainable Global, you can compare the effects of market volatilities on Mainstay Convertible and Ab Sustainable 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 Convertible with a short position of Ab Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Convertible and Ab Sustainable.
Diversification Opportunities for Mainstay Convertible and Ab Sustainable
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and ALTFX is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Vertible Fund and Ab Sustainable Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Sustainable Global and Mainstay 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 Mainstay Vertible Fund are associated (or correlated) with Ab Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Sustainable Global has no effect on the direction of Mainstay Convertible i.e., Mainstay Convertible and Ab Sustainable go up and down completely randomly.
Pair Corralation between Mainstay Convertible and Ab Sustainable
Assuming the 90 days horizon Mainstay Vertible Fund is expected to generate 0.57 times more return on investment than Ab Sustainable. However, Mainstay Vertible Fund is 1.75 times less risky than Ab Sustainable. It trades about 0.19 of its potential returns per unit of risk. Ab Sustainable Global is currently generating about 0.08 per unit of risk. If you would invest 1,876 in Mainstay Vertible Fund on October 23, 2024 and sell it today you would earn a total of 26.00 from holding Mainstay Vertible Fund or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Vertible Fund vs. Ab Sustainable Global
Performance |
| Timeline |
| Mainstay Convertible |
| Ab Sustainable Global |
Mainstay Convertible and Ab Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Convertible and Ab Sustainable
The main advantage of trading using opposite Mainstay Convertible and Ab Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Convertible position performs unexpectedly, Ab Sustainable 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 Ab Sustainable will offset losses from the drop in Ab Sustainable's long position.| Mainstay Convertible vs. Mainstay High Yield | Mainstay Convertible vs. Mainstay Income Builder | Mainstay Convertible vs. Mainstay Sp 500 | Mainstay Convertible vs. Mainstay Large Cap |
| Ab Sustainable vs. Ab Global E | Ab Sustainable vs. Ab Global E | Ab Sustainable vs. Ab Global E | Ab Sustainable vs. Ab Minnesota Portfolio |
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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