Correlation Between Mainstay Convertible and Miller Convertible
Can any of the company-specific risk be diversified away by investing in both Mainstay Convertible and Miller 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 Miller 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 Miller Vertible Bond, you can compare the effects of market volatilities on Mainstay Convertible and Miller 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 Miller Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Convertible and Miller Convertible.
Diversification Opportunities for Mainstay Convertible and Miller Convertible
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Miller is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Vertible Fund and Miller Vertible Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miller Vertible Bond 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 Miller Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miller Vertible Bond has no effect on the direction of Mainstay Convertible i.e., Mainstay Convertible and Miller Convertible go up and down completely randomly.
Pair Corralation between Mainstay Convertible and Miller Convertible
Assuming the 90 days horizon Mainstay Convertible is expected to generate 1.51 times less return on investment than Miller Convertible. In addition to that, Mainstay Convertible is 1.48 times more volatile than Miller Vertible Bond. It trades about 0.03 of its total potential returns per unit of risk. Miller Vertible Bond is currently generating about 0.07 per unit of volatility. If you would invest 1,276 in Miller Vertible Bond on October 25, 2024 and sell it today you would earn a total of 18.00 from holding Miller Vertible Bond or generate 1.41% 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. Miller Vertible Bond
Performance |
| Timeline |
| Mainstay Convertible |
| Miller Vertible Bond |
Mainstay Convertible and Miller Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Convertible and Miller Convertible
The main advantage of trading using opposite Mainstay Convertible and Miller Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Convertible position performs unexpectedly, Miller 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 Miller Convertible will offset losses from the drop in Miller Convertible's long position.| Mainstay Convertible vs. Mainstay High Yield | Mainstay Convertible vs. Mainstay Income Builder | Mainstay Convertible vs. Mainstay Map Equity |
| Miller Convertible vs. Absolute Convertible Arbitrage | Miller Convertible vs. Rationalpier 88 Convertible | Miller Convertible vs. Fidelity Sai Convertible | Miller Convertible vs. Virtus Convertible |
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 CEOs Directory module to screen CEOs from public companies around the world.
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