Correlation Between Mainstay Candriam and T Rowe
Can any of the company-specific risk be diversified away by investing in both Mainstay Candriam and T Rowe 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 T Rowe 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 T Rowe Price, you can compare the effects of market volatilities on Mainstay Candriam and T Rowe 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 T Rowe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Candriam and T Rowe.
Diversification Opportunities for Mainstay Candriam and T Rowe
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mainstay and TRMIX is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Candriam Emerging and T Rowe Price in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Rowe Price 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 T Rowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Rowe Price has no effect on the direction of Mainstay Candriam i.e., Mainstay Candriam and T Rowe go up and down completely randomly.
Pair Corralation between Mainstay Candriam and T Rowe
Assuming the 90 days horizon Mainstay Candriam Emerging is expected to generate 0.17 times more return on investment than T Rowe. However, Mainstay Candriam Emerging is 5.79 times less risky than T Rowe. It trades about 0.24 of its potential returns per unit of risk. T Rowe Price is currently generating about -0.2 per unit of risk. If you would invest 1,007 in Mainstay Candriam Emerging on September 14, 2024 and sell it today you would earn a total of 25.00 from holding Mainstay Candriam Emerging or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Candriam Emerging vs. T Rowe Price
Performance |
| Timeline |
| Mainstay Candriam |
| T Rowe Price |
Mainstay Candriam and T Rowe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Candriam and T Rowe
The main advantage of trading using opposite Mainstay Candriam and T Rowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Candriam position performs unexpectedly, T Rowe 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 T Rowe will offset losses from the drop in T Rowe's long position.| Mainstay Candriam vs. Short Precious Metals | Mainstay Candriam vs. Vy Goldman Sachs | Mainstay Candriam vs. Precious Metals And | Mainstay Candriam vs. Sprott Gold Equity |
| T Rowe vs. Janus Forty Fund | T Rowe vs. George Putnam Fund | T Rowe vs. Allianzgi Nfj Small Cap | T Rowe vs. DEUTSCHE MID CAP |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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