Correlation Between Mainstay Convertible and Harbor Convertible
Can any of the company-specific risk be diversified away by investing in both Mainstay Convertible and Harbor Convertible 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 Harbor Convertible 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 Harbor Vertible Securities, you can compare the effects of market volatilities on Mainstay Convertible and Harbor Convertible 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 Harbor Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Convertible and Harbor Convertible.
Diversification Opportunities for Mainstay Convertible and Harbor Convertible
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Harbor is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Vertible Fund and Harbor Vertible Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Vertible Secu 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 Harbor Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Vertible Secu has no effect on the direction of Mainstay Convertible i.e., Mainstay Convertible and Harbor Convertible go up and down completely randomly.
Pair Corralation between Mainstay Convertible and Harbor Convertible
Assuming the 90 days horizon Mainstay Convertible is expected to generate 1.37 times less return on investment than Harbor Convertible. But when comparing it to its historical volatility, Mainstay Vertible Fund is 1.08 times less risky than Harbor Convertible. It trades about 0.09 of its potential returns per unit of risk. Harbor Vertible Securities is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 962.00 in Harbor Vertible Securities on September 2, 2024 and sell it today you would earn a total of 246.00 from holding Harbor Vertible Securities or generate 25.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Vertible Fund vs. Harbor Vertible Securities
Performance |
| Timeline |
| Mainstay Convertible |
| Harbor Vertible Secu |
Mainstay Convertible and Harbor Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Convertible and Harbor Convertible
The main advantage of trading using opposite Mainstay Convertible and Harbor Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Convertible position performs unexpectedly, Harbor Convertible 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 Harbor Convertible will offset losses from the drop in Harbor Convertible's long position.| Mainstay Convertible vs. Mainstay High Yield | Mainstay Convertible vs. Mainstay Tax Free | Mainstay Convertible vs. Mainstay Income Builder | Mainstay Convertible vs. Mainstay Large Cap |
| Harbor Convertible vs. Putnam Vertible Securities | Harbor Convertible vs. Columbia Vertible Securities | Harbor Convertible vs. Lord Abbett Convertible | Harbor Convertible vs. Franklin Vertible Securities |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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