Correlation Between Mainstay Conservative and Thrivent Large
Can any of the company-specific risk be diversified away by investing in both Mainstay Conservative and Thrivent Large 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 Conservative and Thrivent Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Conservative Allocation and Thrivent Large Cap, you can compare the effects of market volatilities on Mainstay Conservative and Thrivent Large 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 Conservative with a short position of Thrivent Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Conservative and Thrivent Large.
Diversification Opportunities for Mainstay Conservative and Thrivent Large
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Thrivent is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Conservative Allocati and Thrivent Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Large Cap and Mainstay Conservative 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 Conservative Allocation are associated (or correlated) with Thrivent Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Large Cap has no effect on the direction of Mainstay Conservative i.e., Mainstay Conservative and Thrivent Large go up and down completely randomly.
Pair Corralation between Mainstay Conservative and Thrivent Large
Assuming the 90 days horizon Mainstay Conservative Allocation is expected to generate 0.39 times more return on investment than Thrivent Large. However, Mainstay Conservative Allocation is 2.58 times less risky than Thrivent Large. It trades about 0.01 of its potential returns per unit of risk. Thrivent Large Cap is currently generating about -0.05 per unit of risk. If you would invest 1,197 in Mainstay Conservative Allocation on October 24, 2024 and sell it today you would earn a total of 2.00 from holding Mainstay Conservative Allocation or generate 0.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.33% |
| Values | Daily Returns |
Mainstay Conservative Allocati vs. Thrivent Large Cap
Performance |
| Timeline |
| Mainstay Conservative |
| Thrivent Large Cap |
Mainstay Conservative and Thrivent Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Conservative and Thrivent Large
The main advantage of trading using opposite Mainstay Conservative and Thrivent Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Conservative position performs unexpectedly, Thrivent Large 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 Thrivent Large will offset losses from the drop in Thrivent Large's long position.| Mainstay Conservative vs. Mainstay High Yield | Mainstay Conservative vs. Mainstay Tax Free | Mainstay Conservative vs. Mainstay Income Builder | Mainstay Conservative vs. Mainstay Large Cap |
| Thrivent Large vs. Calvert Conservative Allocation | Thrivent Large vs. Wilmington Diversified Income | Thrivent Large vs. Mainstay Conservative Allocation | Thrivent Large vs. Federated Hermes Conservative |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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