Correlation Between Mainstay Large and Siit Ultra
Can any of the company-specific risk be diversified away by investing in both Mainstay Large and Siit Ultra 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 Siit Ultra 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 Siit Ultra Short, you can compare the effects of market volatilities on Mainstay Large and Siit Ultra 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 Siit Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Large and Siit Ultra.
Diversification Opportunities for Mainstay Large and Siit Ultra
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Siit is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Large Cap and Siit Ultra Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Ultra Short 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 Siit Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Ultra Short has no effect on the direction of Mainstay Large i.e., Mainstay Large and Siit Ultra go up and down completely randomly.
Pair Corralation between Mainstay Large and Siit Ultra
Assuming the 90 days horizon Mainstay Large Cap is expected to generate 12.97 times more return on investment than Siit Ultra. However, Mainstay Large is 12.97 times more volatile than Siit Ultra Short. It trades about 0.07 of its potential returns per unit of risk. Siit Ultra Short is currently generating about 0.21 per unit of risk. If you would invest 914.00 in Mainstay Large Cap on August 26, 2024 and sell it today you would earn a total of 202.00 from holding Mainstay Large Cap or generate 22.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Large Cap vs. Siit Ultra Short
Performance |
| Timeline |
| Mainstay Large Cap |
| Siit Ultra Short |
Mainstay Large and Siit Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Large and Siit Ultra
The main advantage of trading using opposite Mainstay Large and Siit Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Large position performs unexpectedly, Siit Ultra 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 Ultra will offset losses from the drop in Siit Ultra's long position.| Mainstay Large vs. Siit Ultra Short | Mainstay Large vs. Rbc Short Duration | Mainstay Large vs. Astor Longshort Fund | Mainstay Large vs. Angel Oak Ultrashort |
| Siit Ultra vs. Shelton Emerging Markets | Siit Ultra vs. Origin Emerging Markets | Siit Ultra vs. Transamerica Emerging Markets | Siit Ultra vs. Extended Market Index |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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