Correlation Between Mainstay Short and International Investors
Can any of the company-specific risk be diversified away by investing in both Mainstay Short and International Investors 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 International Investors 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 International Investors Gold, you can compare the effects of market volatilities on Mainstay Short and International Investors 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 International Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Short and International Investors.
Diversification Opportunities for Mainstay Short and International Investors
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mainstay and International is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Short Duration and International Investors Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Investors 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 International Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Investors has no effect on the direction of Mainstay Short i.e., Mainstay Short and International Investors go up and down completely randomly.
Pair Corralation between Mainstay Short and International Investors
Assuming the 90 days horizon Mainstay Short Duration is expected to generate 0.05 times more return on investment than International Investors. However, Mainstay Short Duration is 20.5 times less risky than International Investors. It trades about 0.19 of its potential returns per unit of risk. International Investors Gold is currently generating about -0.23 per unit of risk. If you would invest 955.00 in Mainstay Short Duration on August 29, 2024 and sell it today you would earn a total of 4.00 from holding Mainstay Short Duration or generate 0.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mainstay Short Duration vs. International Investors Gold
Performance |
| Timeline |
| Mainstay Short Duration |
| International Investors |
Mainstay Short and International Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Short and International Investors
The main advantage of trading using opposite Mainstay Short and International Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Short position performs unexpectedly, International Investors 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 International Investors will offset losses from the drop in International Investors' long position.| Mainstay Short vs. Rationalpier 88 Convertible | Mainstay Short vs. Lord Abbett Convertible | Mainstay Short vs. Putnam Convertible Incm Gwth | Mainstay Short vs. Gabelli Convertible And |
| International Investors vs. First Eagle Gold | International Investors vs. First Eagle Gold | International Investors vs. Oppenheimer Gold Special | International Investors vs. Aquagold International |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |