Correlation Between Mainstay Short and China Fund
Can any of the company-specific risk be diversified away by investing in both Mainstay Short and China Fund 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 China Fund 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 China Fund, you can compare the effects of market volatilities on Mainstay Short and China Fund 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 China Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Short and China Fund.
Diversification Opportunities for Mainstay Short and China Fund
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mainstay and China is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Short Duration and China Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Fund 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 China Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Fund has no effect on the direction of Mainstay Short i.e., Mainstay Short and China Fund go up and down completely randomly.
Pair Corralation between Mainstay Short and China Fund
Assuming the 90 days horizon Mainstay Short Duration is expected to generate 0.05 times more return on investment than China Fund. However, Mainstay Short Duration is 20.26 times less risky than China Fund. It trades about 0.17 of its potential returns per unit of risk. China Fund is currently generating about -0.06 per unit of risk. If you would invest 946.00 in Mainstay Short Duration on November 1, 2024 and sell it today you would earn a total of 14.00 from holding Mainstay Short Duration or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Short Duration vs. China Fund
Performance |
| Timeline |
| Mainstay Short Duration |
| China Fund |
Mainstay Short and China Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Short and China Fund
The main advantage of trading using opposite Mainstay Short and China Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Short position performs unexpectedly, China Fund 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 China Fund will offset losses from the drop in China Fund's long position.| Mainstay Short vs. Schwab Government Money | Mainstay Short vs. Vanguard Money Market | Mainstay Short vs. Hsbc Treasury Money | Mainstay Short vs. Blackrock Exchange Portfolio |
| China Fund vs. Ashmore Group Plc | China Fund vs. Mexico Equity And | China Fund vs. Western Asset Managed | China Fund vs. Blackrock Muniholdings Quality |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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