Correlation Between Mainstay Convertible and Fs Managed
Can any of the company-specific risk be diversified away by investing in both Mainstay Convertible and Fs Managed 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 Fs Managed 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 Fs Managed Futures, you can compare the effects of market volatilities on Mainstay Convertible and Fs Managed 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 Fs Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Convertible and Fs Managed.
Diversification Opportunities for Mainstay Convertible and Fs Managed
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mainstay and FMFFX is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Vertible Fund and Fs Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fs Managed Futures 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 Fs Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fs Managed Futures has no effect on the direction of Mainstay Convertible i.e., Mainstay Convertible and Fs Managed go up and down completely randomly.
Pair Corralation between Mainstay Convertible and Fs Managed
Assuming the 90 days horizon Mainstay Vertible Fund is expected to generate 0.51 times more return on investment than Fs Managed. However, Mainstay Vertible Fund is 1.96 times less risky than Fs Managed. It trades about 0.15 of its potential returns per unit of risk. Fs Managed Futures is currently generating about -0.14 per unit of risk. If you would invest 1,782 in Mainstay Vertible Fund on August 29, 2024 and sell it today you would earn a total of 165.00 from holding Mainstay Vertible Fund or generate 9.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 78.57% |
| Values | Daily Returns |
Mainstay Vertible Fund vs. Fs Managed Futures
Performance |
| Timeline |
| Mainstay Convertible |
| Fs Managed Futures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Mainstay Convertible and Fs Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Convertible and Fs Managed
The main advantage of trading using opposite Mainstay Convertible and Fs Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Convertible position performs unexpectedly, Fs Managed 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 Fs Managed will offset losses from the drop in Fs Managed's long position.| Mainstay Convertible vs. Mainstay High Yield | Mainstay Convertible vs. Mainstay Income Builder | Mainstay Convertible vs. Mainstay Map Equity |
| Fs Managed vs. Firsthand Technology Opportunities | Fs Managed vs. Mfs Technology Fund | Fs Managed vs. Blackrock Science Technology | Fs Managed vs. Science Technology 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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