Correlation Between Mainstay Convertible and Siit Long
Can any of the company-specific risk be diversified away by investing in both Mainstay Convertible and Siit Long 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 Siit Long 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 Siit Long Duration, you can compare the effects of market volatilities on Mainstay Convertible and Siit Long 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 Siit Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Convertible and Siit Long.
Diversification Opportunities for Mainstay Convertible and Siit Long
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Siit is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Vertible Fund and Siit Long Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Long Duration 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 Siit Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Long Duration has no effect on the direction of Mainstay Convertible i.e., Mainstay Convertible and Siit Long go up and down completely randomly.
Pair Corralation between Mainstay Convertible and Siit Long
Assuming the 90 days horizon Mainstay Vertible Fund is expected to under-perform the Siit Long. In addition to that, Mainstay Convertible is 2.04 times more volatile than Siit Long Duration. It trades about -0.29 of its total potential returns per unit of risk. Siit Long Duration is currently generating about -0.59 per unit of volatility. If you would invest 807.00 in Siit Long Duration on October 9, 2024 and sell it today you would lose (45.00) from holding Siit Long Duration or give up 5.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Vertible Fund vs. Siit Long Duration
Performance |
| Timeline |
| Mainstay Convertible |
| Siit Long Duration |
Mainstay Convertible and Siit Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Convertible and Siit Long
The main advantage of trading using opposite Mainstay Convertible and Siit Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Convertible position performs unexpectedly, Siit Long 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 Siit Long will offset losses from the drop in Siit Long'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 |
| Siit Long vs. Virtus High Yield | Siit Long vs. Siit High Yield | Siit Long vs. Transamerica High Yield | Siit Long vs. Buffalo High Yield |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |