Correlation Between Mainstay Short and Ab Global
Can any of the company-specific risk be diversified away by investing in both Mainstay Short and Ab Global 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 Short and Ab Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Short Duration and Ab Global Real, you can compare the effects of market volatilities on Mainstay Short and Ab Global 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 Short with a short position of Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Short and Ab Global.
Diversification Opportunities for Mainstay Short and Ab Global
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and ARECX is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Short Duration and Ab Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Real and Mainstay Short 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 Short Duration are associated (or correlated) with Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Real has no effect on the direction of Mainstay Short i.e., Mainstay Short and Ab Global go up and down completely randomly.
Pair Corralation between Mainstay Short and Ab Global
Assuming the 90 days horizon Mainstay Short Duration is expected to generate 0.16 times more return on investment than Ab Global. However, Mainstay Short Duration is 6.32 times less risky than Ab Global. It trades about -0.23 of its potential returns per unit of risk. Ab Global Real is currently generating about -0.05 per unit of risk. If you would invest 944.00 in Mainstay Short Duration on January 12, 2025 and sell it today you would lose (15.00) from holding Mainstay Short Duration or give up 1.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mainstay Short Duration vs. Ab Global Real
Performance |
| Timeline |
| Mainstay Short Duration |
| Ab Global Real |
Mainstay Short and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Short and Ab Global
The main advantage of trading using opposite Mainstay Short and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Short position performs unexpectedly, Ab Global 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 Ab Global will offset losses from the drop in Ab Global's long position.| Mainstay Short vs. Mainstay Large Cap | Mainstay Short vs. Mainstay Large Cap | Mainstay Short vs. Mainstay Large Cap | Mainstay Short vs. Mainstay Winslow Large |
| Ab Global vs. Global Diversified Income | Ab Global vs. Invesco Diversified Dividend | Ab Global vs. Blackrock Diversified Fixed | Ab Global vs. Mfs Diversified Income |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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