Correlation Between Mainstay Convertible and Ab Global
Can any of the company-specific risk be diversified away by investing in both Mainstay Convertible and Ab Global 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 Global 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 Global E, you can compare the effects of market volatilities on Mainstay Convertible and Ab Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Convertible and Ab Global.
Diversification Opportunities for Mainstay Convertible and Ab Global
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and GCEAX is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Vertible Fund and Ab Global E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global E 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global E has no effect on the direction of Mainstay Convertible i.e., Mainstay Convertible and Ab Global go up and down completely randomly.
Pair Corralation between Mainstay Convertible and Ab Global
Assuming the 90 days horizon Mainstay Vertible Fund is expected to generate 0.69 times more return on investment than Ab Global. However, Mainstay Vertible Fund is 1.45 times less risky than Ab Global. It trades about -0.28 of its potential returns per unit of risk. Ab Global E is currently generating about -0.27 per unit of risk. If you would invest 1,947 in Mainstay Vertible Fund on October 11, 2024 and sell it today you would lose (71.00) from holding Mainstay Vertible Fund or give up 3.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Mainstay Vertible Fund vs. Ab Global E
Performance |
| Timeline |
| Mainstay Convertible |
| Ab Global E |
Mainstay Convertible and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Convertible and Ab Global
The main advantage of trading using opposite Mainstay Convertible and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Convertible position performs unexpectedly, Ab Global 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 Global will offset losses from the drop in Ab Global'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 Global vs. Origin Emerging Markets | Ab Global vs. Ashmore Emerging Markets | Ab Global vs. Artisan Developing World | Ab Global vs. Dreyfus Bond Market |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |