Correlation Between Arrow Managed and Mainstay Map
Can any of the company-specific risk be diversified away by investing in both Arrow Managed and Mainstay Map 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 Arrow Managed and Mainstay Map into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arrow Managed Futures and Mainstay Map Equity, you can compare the effects of market volatilities on Arrow Managed and Mainstay Map 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 Arrow Managed with a short position of Mainstay Map. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Managed and Mainstay Map.
Diversification Opportunities for Arrow Managed and Mainstay Map
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arrow and Mainstay is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Managed Futures and Mainstay Map Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Map Equity and Arrow Managed 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 Arrow Managed Futures are associated (or correlated) with Mainstay Map. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Map Equity has no effect on the direction of Arrow Managed i.e., Arrow Managed and Mainstay Map go up and down completely randomly.
Pair Corralation between Arrow Managed and Mainstay Map
Assuming the 90 days horizon Arrow Managed Futures is expected to under-perform the Mainstay Map. In addition to that, Arrow Managed is 1.93 times more volatile than Mainstay Map Equity. It trades about -0.09 of its total potential returns per unit of risk. Mainstay Map Equity is currently generating about 0.11 per unit of volatility. If you would invest 2,010 in Mainstay Map Equity on September 3, 2024 and sell it today you would earn a total of 261.00 from holding Mainstay Map Equity or generate 12.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arrow Managed Futures vs. Mainstay Map Equity
Performance |
| Timeline |
| Arrow Managed Futures |
| Mainstay Map Equity |
Arrow Managed and Mainstay Map Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arrow Managed and Mainstay Map
The main advantage of trading using opposite Arrow Managed and Mainstay Map positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Managed position performs unexpectedly, Mainstay Map 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 Mainstay Map will offset losses from the drop in Mainstay Map's long position.| Arrow Managed vs. Transamerica Funds | Arrow Managed vs. T Rowe Price | Arrow Managed vs. Cs 607 Tax | Arrow Managed vs. Intermediate Term Tax Free Bond |
| Mainstay Map vs. Dreyfusstandish Global Fixed | Mainstay Map vs. Ab Global Real | Mainstay Map vs. Ab Global Risk | Mainstay Map vs. Barings Global Floating |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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