Correlation Between Mainstay Convertible and Short Real
Can any of the company-specific risk be diversified away by investing in both Mainstay Convertible and Short 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 Short 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 Short Real Estate, you can compare the effects of market volatilities on Mainstay Convertible and Short 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 Short Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Convertible and Short Real.
Diversification Opportunities for Mainstay Convertible and Short Real
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mainstay and Short is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Vertible Fund and Short Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short 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 Short Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Real Estate has no effect on the direction of Mainstay Convertible i.e., Mainstay Convertible and Short Real go up and down completely randomly.
Pair Corralation between Mainstay Convertible and Short Real
Assuming the 90 days horizon Mainstay Vertible Fund is expected to generate 0.45 times more return on investment than Short Real. However, Mainstay Vertible Fund is 2.23 times less risky than Short Real. It trades about 0.04 of its potential returns per unit of risk. Short Real Estate is currently generating about 0.0 per unit of risk. If you would invest 1,679 in Mainstay Vertible Fund on October 16, 2024 and sell it today you would earn a total of 185.00 from holding Mainstay Vertible Fund or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Vertible Fund vs. Short Real Estate
Performance |
| Timeline |
| Mainstay Convertible |
| Short Real Estate |
Mainstay Convertible and Short Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Convertible and Short Real
The main advantage of trading using opposite Mainstay Convertible and Short Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Convertible position performs unexpectedly, Short 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 Short Real will offset losses from the drop in Short 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 |
| Short Real vs. Absolute Convertible Arbitrage | Short Real vs. Franklin Vertible Securities | Short Real vs. Fidelity Vertible Securities | Short Real vs. Mainstay Vertible Fund |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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