Correlation Between Mainstay Large and Tfa Alphagen
Can any of the company-specific risk be diversified away by investing in both Mainstay Large and Tfa Alphagen 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 Large and Tfa Alphagen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Large Cap and Tfa Alphagen Growth, you can compare the effects of market volatilities on Mainstay Large and Tfa Alphagen 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 Large with a short position of Tfa Alphagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Large and Tfa Alphagen.
Diversification Opportunities for Mainstay Large and Tfa Alphagen
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Tfa is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Large Cap and Tfa Alphagen Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tfa Alphagen Growth and Mainstay Large 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 Large Cap are associated (or correlated) with Tfa Alphagen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tfa Alphagen Growth has no effect on the direction of Mainstay Large i.e., Mainstay Large and Tfa Alphagen go up and down completely randomly.
Pair Corralation between Mainstay Large and Tfa Alphagen
Assuming the 90 days horizon Mainstay Large is expected to generate 1.11 times less return on investment than Tfa Alphagen. In addition to that, Mainstay Large is 1.48 times more volatile than Tfa Alphagen Growth. It trades about 0.12 of its total potential returns per unit of risk. Tfa Alphagen Growth is currently generating about 0.2 per unit of volatility. If you would invest 1,087 in Tfa Alphagen Growth on August 31, 2024 and sell it today you would earn a total of 38.00 from holding Tfa Alphagen Growth or generate 3.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Large Cap vs. Tfa Alphagen Growth
Performance |
| Timeline |
| Mainstay Large Cap |
| Tfa Alphagen Growth |
Mainstay Large and Tfa Alphagen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Large and Tfa Alphagen
The main advantage of trading using opposite Mainstay Large and Tfa Alphagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Large position performs unexpectedly, Tfa Alphagen 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 Tfa Alphagen will offset losses from the drop in Tfa Alphagen's long position.| Mainstay Large vs. Tfa Alphagen Growth | Mainstay Large vs. Nationwide Growth Fund | Mainstay Large vs. Eip Growth And | Mainstay Large vs. Champlain Mid Cap |
| Tfa Alphagen vs. Versatile Bond Portfolio | Tfa Alphagen vs. T Rowe Price | Tfa Alphagen vs. California Bond Fund | Tfa Alphagen vs. Ms Global Fixed |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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