Correlation Between Mainstay Candriam and Saat Defensive
Can any of the company-specific risk be diversified away by investing in both Mainstay Candriam and Saat Defensive 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 Candriam and Saat Defensive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Candriam Emerging and Saat Defensive Strategy, you can compare the effects of market volatilities on Mainstay Candriam and Saat Defensive 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 Candriam with a short position of Saat Defensive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Candriam and Saat Defensive.
Diversification Opportunities for Mainstay Candriam and Saat Defensive
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mainstay and Saat is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Candriam Emerging and Saat Defensive Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Defensive Strategy and Mainstay Candriam 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 Candriam Emerging are associated (or correlated) with Saat Defensive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Defensive Strategy has no effect on the direction of Mainstay Candriam i.e., Mainstay Candriam and Saat Defensive go up and down completely randomly.
Pair Corralation between Mainstay Candriam and Saat Defensive
Assuming the 90 days horizon Mainstay Candriam Emerging is expected to generate 7.56 times more return on investment than Saat Defensive. However, Mainstay Candriam is 7.56 times more volatile than Saat Defensive Strategy. It trades about 0.07 of its potential returns per unit of risk. Saat Defensive Strategy is currently generating about 0.31 per unit of risk. If you would invest 1,003 in Mainstay Candriam Emerging on November 3, 2024 and sell it today you would earn a total of 12.00 from holding Mainstay Candriam Emerging or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Candriam Emerging vs. Saat Defensive Strategy
Performance |
| Timeline |
| Mainstay Candriam |
| Saat Defensive Strategy |
Mainstay Candriam and Saat Defensive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Candriam and Saat Defensive
The main advantage of trading using opposite Mainstay Candriam and Saat Defensive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Candriam position performs unexpectedly, Saat Defensive 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 Saat Defensive will offset losses from the drop in Saat Defensive's long position.| Mainstay Candriam vs. Transamerica Mlp Energy | Mainstay Candriam vs. Short Oil Gas | Mainstay Candriam vs. Energy Services Fund | Mainstay Candriam vs. World Energy Fund |
| Saat Defensive vs. Simt Multi Asset Inflation | Saat Defensive vs. Fidelity Sai Inflationfocused | Saat Defensive vs. Arrow Managed Futures | Saat Defensive vs. Ab Bond Inflation |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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