Correlation Between Mainstay Convertible and Gabelli Money
Can any of the company-specific risk be diversified away by investing in both Mainstay Convertible and Gabelli Money 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 Gabelli Money 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 The Gabelli Money, you can compare the effects of market volatilities on Mainstay Convertible and Gabelli Money 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 Gabelli Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Convertible and Gabelli Money.
Diversification Opportunities for Mainstay Convertible and Gabelli Money
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Gabelli is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Vertible Fund and The Gabelli Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Money 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 Gabelli Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Money has no effect on the direction of Mainstay Convertible i.e., Mainstay Convertible and Gabelli Money go up and down completely randomly.
Pair Corralation between Mainstay Convertible and Gabelli Money
If you would invest 1,889 in Mainstay Vertible Fund on August 27, 2024 and sell it today you would earn a total of 56.00 from holding Mainstay Vertible Fund or generate 2.96% 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. The Gabelli Money
Performance |
| Timeline |
| Mainstay Convertible |
| Gabelli Money |
Mainstay Convertible and Gabelli Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Convertible and Gabelli Money
The main advantage of trading using opposite Mainstay Convertible and Gabelli Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Convertible position performs unexpectedly, Gabelli Money 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 Gabelli Money will offset losses from the drop in Gabelli Money's long position.| Mainstay Convertible vs. Mainstay High Yield | Mainstay Convertible vs. Mainstay Map Equity | Mainstay Convertible vs. Aquagold International | Mainstay Convertible vs. Morningstar Unconstrained Allocation |
| Gabelli Money vs. Mainstay Vertible Fund | Gabelli Money vs. Franklin Vertible Securities | Gabelli Money vs. Columbia Vertible Securities | Gabelli Money vs. Absolute Convertible Arbitrage |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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