Correlation Between Mainstay Convertible and The Hartford
Can any of the company-specific risk be diversified away by investing in both Mainstay Convertible and The Hartford 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 The Hartford 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 Hartford International, you can compare the effects of market volatilities on Mainstay Convertible and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Convertible and The Hartford.
Diversification Opportunities for Mainstay Convertible and The Hartford
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mainstay and The is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Vertible Fund and The Hartford International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Interna 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Interna has no effect on the direction of Mainstay Convertible i.e., Mainstay Convertible and The Hartford go up and down completely randomly.
Pair Corralation between Mainstay Convertible and The Hartford
Assuming the 90 days horizon Mainstay Vertible Fund is expected to generate 0.64 times more return on investment than The Hartford. However, Mainstay Vertible Fund is 1.56 times less risky than The Hartford. It trades about 0.07 of its potential returns per unit of risk. The Hartford International is currently generating about 0.04 per unit of risk. If you would invest 1,733 in Mainstay Vertible Fund on August 26, 2024 and sell it today you would earn a total of 201.00 from holding Mainstay Vertible Fund or generate 11.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Vertible Fund vs. The Hartford International
Performance |
| Timeline |
| Mainstay Convertible |
| Hartford Interna |
Mainstay Convertible and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Convertible and The Hartford
The main advantage of trading using opposite Mainstay Convertible and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Convertible position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford'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 |
| The Hartford vs. Miller Vertible Bond | The Hartford vs. Lord Abbett Vertible | The Hartford vs. Franklin Vertible Securities | The Hartford vs. Mainstay Vertible 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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