Correlation Between Mainstay Convertible and Jhancock Real
Can any of the company-specific risk be diversified away by investing in both Mainstay Convertible and Jhancock Real 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 Jhancock Real 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 Jhancock Real Estate, you can compare the effects of market volatilities on Mainstay Convertible and Jhancock Real 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 Jhancock Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Convertible and Jhancock Real.
Diversification Opportunities for Mainstay Convertible and Jhancock Real
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and Jhancock is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Vertible Fund and Jhancock Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Real Estate 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 Jhancock Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Real Estate has no effect on the direction of Mainstay Convertible i.e., Mainstay Convertible and Jhancock Real go up and down completely randomly.
Pair Corralation between Mainstay Convertible and Jhancock Real
Assuming the 90 days horizon Mainstay Vertible Fund is expected to generate 0.91 times more return on investment than Jhancock Real. However, Mainstay Vertible Fund is 1.1 times less risky than Jhancock Real. It trades about -0.29 of its potential returns per unit of risk. Jhancock Real Estate is currently generating about -0.31 per unit of risk. If you would invest 1,998 in Mainstay Vertible Fund on October 9, 2024 and sell it today you would lose (113.00) from holding Mainstay Vertible Fund or give up 5.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Vertible Fund vs. Jhancock Real Estate
Performance |
| Timeline |
| Mainstay Convertible |
| Jhancock Real Estate |
Mainstay Convertible and Jhancock Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Convertible and Jhancock Real
The main advantage of trading using opposite Mainstay Convertible and Jhancock Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Convertible position performs unexpectedly, Jhancock Real 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 Jhancock Real will offset losses from the drop in Jhancock Real'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 |
| Jhancock Real vs. Gamco Global Gold | Jhancock Real vs. Fidelity Advisor Gold | Jhancock Real vs. Oppenheimer Gold Special | Jhancock Real vs. Deutsche Gold Precious |
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..
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