Correlation Between Mainstay Convertible and Catalyst/princeton
Can any of the company-specific risk be diversified away by investing in both Mainstay Convertible and Catalyst/princeton 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 Catalyst/princeton 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 Catalystprinceton Floating Rate, you can compare the effects of market volatilities on Mainstay Convertible and Catalyst/princeton 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 Catalyst/princeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Convertible and Catalyst/princeton.
Diversification Opportunities for Mainstay Convertible and Catalyst/princeton
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Catalyst/princeton is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Vertible Fund and Catalystprinceton Floating Rat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst/princeton 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 Catalyst/princeton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst/princeton has no effect on the direction of Mainstay Convertible i.e., Mainstay Convertible and Catalyst/princeton go up and down completely randomly.
Pair Corralation between Mainstay Convertible and Catalyst/princeton
Assuming the 90 days horizon Mainstay Vertible Fund is expected to generate 10.16 times more return on investment than Catalyst/princeton. However, Mainstay Convertible is 10.16 times more volatile than Catalystprinceton Floating Rate. It trades about 0.42 of its potential returns per unit of risk. Catalystprinceton Floating Rate is currently generating about 0.49 per unit of risk. If you would invest 1,942 in Mainstay Vertible Fund on September 3, 2024 and sell it today you would earn a total of 74.00 from holding Mainstay Vertible Fund or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Vertible Fund vs. Catalystprinceton Floating Rat
Performance |
| Timeline |
| Mainstay Convertible |
| Catalyst/princeton |
Mainstay Convertible and Catalyst/princeton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Convertible and Catalyst/princeton
The main advantage of trading using opposite Mainstay Convertible and Catalyst/princeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Convertible position performs unexpectedly, Catalyst/princeton 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 Catalyst/princeton will offset losses from the drop in Catalyst/princeton's long position.| Mainstay Convertible vs. Franklin Vertible Securities | Mainstay Convertible vs. Mainstay Floating Rate | Mainstay Convertible vs. Calamos Vertible Fund | Mainstay Convertible vs. Mainstay High Yield |
| Catalyst/princeton vs. Catalystmillburn Hedge Strategy | Catalyst/princeton vs. Catalyst Enhanced Income | Catalyst/princeton vs. Catalyst Insider Income | Catalyst/princeton vs. Rational Special Situations |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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