Correlation Between Mainstay Income and Aqr Large
Can any of the company-specific risk be diversified away by investing in both Mainstay Income and Aqr Large 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 Income and Aqr Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Income Builder and Aqr Large Cap, you can compare the effects of market volatilities on Mainstay Income and Aqr Large 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 Income with a short position of Aqr Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Income and Aqr Large.
Diversification Opportunities for Mainstay Income and Aqr Large
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mainstay and Aqr is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Income Builder and Aqr Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Large Cap and Mainstay Income 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 Income Builder are associated (or correlated) with Aqr Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Large Cap has no effect on the direction of Mainstay Income i.e., Mainstay Income and Aqr Large go up and down completely randomly.
Pair Corralation between Mainstay Income and Aqr Large
Assuming the 90 days horizon Mainstay Income is expected to generate 4.06 times less return on investment than Aqr Large. But when comparing it to its historical volatility, Mainstay Income Builder is 2.04 times less risky than Aqr Large. It trades about 0.12 of its potential returns per unit of risk. Aqr Large Cap is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,441 in Aqr Large Cap on August 29, 2024 and sell it today you would earn a total of 141.00 from holding Aqr Large Cap or generate 5.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mainstay Income Builder vs. Aqr Large Cap
Performance |
| Timeline |
| Mainstay Income Builder |
| Aqr Large Cap |
Mainstay Income and Aqr Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Income and Aqr Large
The main advantage of trading using opposite Mainstay Income and Aqr Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Income position performs unexpectedly, Aqr Large 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 Aqr Large will offset losses from the drop in Aqr Large's long position.| Mainstay Income vs. Artisan Small Cap | Mainstay Income vs. Small Pany Growth | Mainstay Income vs. Tax Managed Mid Small | Mainstay Income vs. Us Small Cap |
| Aqr Large vs. Growth Fund Of | Aqr Large vs. HUMANA INC | Aqr Large vs. Aquagold International | Aqr Large vs. Barloworld Ltd ADR |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |