Correlation Between Mainstay Income and Siit Emerging
Can any of the company-specific risk be diversified away by investing in both Mainstay Income and Siit Emerging 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 Siit Emerging 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 Siit Emerging Markets, you can compare the effects of market volatilities on Mainstay Income and Siit Emerging 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 Siit Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Income and Siit Emerging.
Diversification Opportunities for Mainstay Income and Siit Emerging
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Siit is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Income Builder and Siit Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Emerging Markets 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 Siit Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Emerging Markets has no effect on the direction of Mainstay Income i.e., Mainstay Income and Siit Emerging go up and down completely randomly.
Pair Corralation between Mainstay Income and Siit Emerging
Assuming the 90 days horizon Mainstay Income Builder is expected to generate 0.65 times more return on investment than Siit Emerging. However, Mainstay Income Builder is 1.54 times less risky than Siit Emerging. It trades about 0.11 of its potential returns per unit of risk. Siit Emerging Markets is currently generating about 0.05 per unit of risk. If you would invest 1,913 in Mainstay Income Builder on September 1, 2024 and sell it today you would earn a total of 218.00 from holding Mainstay Income Builder or generate 11.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.47% |
| Values | Daily Returns |
Mainstay Income Builder vs. Siit Emerging Markets
Performance |
| Timeline |
| Mainstay Income Builder |
| Siit Emerging Markets |
Mainstay Income and Siit Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Income and Siit Emerging
The main advantage of trading using opposite Mainstay Income and Siit Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Income position performs unexpectedly, Siit Emerging 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 Siit Emerging will offset losses from the drop in Siit Emerging's long position.| Mainstay Income vs. Siit Emerging Markets | Mainstay Income vs. Harbor Diversified International | Mainstay Income vs. Transamerica Emerging Markets | Mainstay Income vs. Rbc Emerging Markets |
| Siit Emerging vs. Saat Market Growth | Siit Emerging vs. Simt Real Return | Siit Emerging vs. Simt Small Cap | Siit Emerging vs. Siit Screened World |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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