Correlation Between Mainstay High and Broadview Opportunity
Can any of the company-specific risk be diversified away by investing in both Mainstay High and Broadview Opportunity 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 High and Broadview Opportunity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay High Yield and Broadview Opportunity Fund, you can compare the effects of market volatilities on Mainstay High and Broadview Opportunity 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 High with a short position of Broadview Opportunity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay High and Broadview Opportunity.
Diversification Opportunities for Mainstay High and Broadview Opportunity
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mainstay and Broadview is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay High Yield and Broadview Opportunity Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadview Opportunity and Mainstay High 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 High Yield are associated (or correlated) with Broadview Opportunity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadview Opportunity has no effect on the direction of Mainstay High i.e., Mainstay High and Broadview Opportunity go up and down completely randomly.
Pair Corralation between Mainstay High and Broadview Opportunity
Assuming the 90 days horizon Mainstay High Yield is expected to generate 0.07 times more return on investment than Broadview Opportunity. However, Mainstay High Yield is 14.51 times less risky than Broadview Opportunity. It trades about 0.46 of its potential returns per unit of risk. Broadview Opportunity Fund is currently generating about -0.14 per unit of risk. If you would invest 519.00 in Mainstay High Yield on October 25, 2024 and sell it today you would earn a total of 7.00 from holding Mainstay High Yield or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Mainstay High Yield vs. Broadview Opportunity Fund
Performance |
| Timeline |
| Mainstay High Yield |
| Broadview Opportunity |
Mainstay High and Broadview Opportunity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay High and Broadview Opportunity
The main advantage of trading using opposite Mainstay High and Broadview Opportunity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay High position performs unexpectedly, Broadview Opportunity 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 Broadview Opportunity will offset losses from the drop in Broadview Opportunity's long position.| Mainstay High vs. Franklin Small Cap | Mainstay High vs. Tax Managed Mid Small | Mainstay High vs. Small Pany Growth | Mainstay High vs. Kinetics Small Cap |
| Broadview Opportunity vs. Invesco Global Real | Broadview Opportunity vs. Mainstay High Yield | Broadview Opportunity vs. Mfs Emerging Markets | Broadview Opportunity vs. Amg Timessquare Mid |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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