Correlation Between Mainstay Short and Fa 529
Can any of the company-specific risk be diversified away by investing in both Mainstay Short and Fa 529 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 Fa 529 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 Fa 529 Aggressive, you can compare the effects of market volatilities on Mainstay Short and Fa 529 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 Fa 529. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Short and Fa 529.
Diversification Opportunities for Mainstay Short and Fa 529
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and FFCGX is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Short Duration and Fa 529 Aggressive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fa 529 Aggressive 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 Fa 529. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fa 529 Aggressive has no effect on the direction of Mainstay Short i.e., Mainstay Short and Fa 529 go up and down completely randomly.
Pair Corralation between Mainstay Short and Fa 529
Assuming the 90 days horizon Mainstay Short is expected to generate 2.19 times less return on investment than Fa 529. But when comparing it to its historical volatility, Mainstay Short Duration is 5.82 times less risky than Fa 529. It trades about 0.24 of its potential returns per unit of risk. Fa 529 Aggressive is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,935 in Fa 529 Aggressive on November 28, 2024 and sell it today you would earn a total of 1,110 from holding Fa 529 Aggressive or generate 37.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Short Duration vs. Fa 529 Aggressive
Performance |
| Timeline |
| Mainstay Short Duration |
| Fa 529 Aggressive |
Mainstay Short and Fa 529 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Short and Fa 529
The main advantage of trading using opposite Mainstay Short and Fa 529 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Short position performs unexpectedly, Fa 529 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 Fa 529 will offset losses from the drop in Fa 529's long position.| Mainstay Short vs. Pace High Yield | Mainstay Short vs. Ab High Income | Mainstay Short vs. Artisan High Income | Mainstay Short vs. Access Flex High |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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