Correlation Between Mainstay Large and Rbb Fund
Can any of the company-specific risk be diversified away by investing in both Mainstay Large and Rbb Fund 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 Rbb Fund 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 Rbb Fund , you can compare the effects of market volatilities on Mainstay Large and Rbb Fund 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 Rbb Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Large and Rbb Fund.
Diversification Opportunities for Mainstay Large and Rbb Fund
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Rbb is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Large Cap and Rbb Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbb Fund 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 Rbb Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbb Fund has no effect on the direction of Mainstay Large i.e., Mainstay Large and Rbb Fund go up and down completely randomly.
Pair Corralation between Mainstay Large and Rbb Fund
Assuming the 90 days horizon Mainstay Large Cap is expected to generate 6.03 times more return on investment than Rbb Fund. However, Mainstay Large is 6.03 times more volatile than Rbb Fund . It trades about 0.08 of its potential returns per unit of risk. Rbb Fund is currently generating about 0.14 per unit of risk. If you would invest 1,111 in Mainstay Large Cap on August 24, 2024 and sell it today you would earn a total of 286.00 from holding Mainstay Large Cap or generate 25.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Mainstay Large Cap vs. Rbb Fund
Performance |
| Timeline |
| Mainstay Large Cap |
| Rbb Fund |
Mainstay Large and Rbb Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Large and Rbb Fund
The main advantage of trading using opposite Mainstay Large and Rbb Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Large position performs unexpectedly, Rbb Fund 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 Rbb Fund will offset losses from the drop in Rbb Fund's long position.| Mainstay Large vs. Rbb Fund | Mainstay Large vs. Qs Large Cap | Mainstay Large vs. Ips Strategic Capital | Mainstay Large vs. Ab Value Fund |
| Rbb Fund vs. Barings Active Short | Rbb Fund vs. Ab Select Longshort | Rbb Fund vs. Ultra Short Term Fixed | Rbb Fund vs. Guggenheim Long Short |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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