Correlation Between Mainstay Winslow and Power Global
Can any of the company-specific risk be diversified away by investing in both Mainstay Winslow and Power Global 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 Winslow and Power Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Winslow Large and Power Global Tactical, you can compare the effects of market volatilities on Mainstay Winslow and Power Global 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 Winslow with a short position of Power Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Winslow and Power Global.
Diversification Opportunities for Mainstay Winslow and Power Global
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Power is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Winslow Large and Power Global Tactical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Global Tactical and Mainstay Winslow 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 Winslow Large are associated (or correlated) with Power Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Global Tactical has no effect on the direction of Mainstay Winslow i.e., Mainstay Winslow and Power Global go up and down completely randomly.
Pair Corralation between Mainstay Winslow and Power Global
Assuming the 90 days horizon Mainstay Winslow Large is expected to generate 2.67 times more return on investment than Power Global. However, Mainstay Winslow is 2.67 times more volatile than Power Global Tactical. It trades about 0.29 of its potential returns per unit of risk. Power Global Tactical is currently generating about 0.36 per unit of risk. If you would invest 1,040 in Mainstay Winslow Large on September 1, 2024 and sell it today you would earn a total of 65.00 from holding Mainstay Winslow Large or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Winslow Large vs. Power Global Tactical
Performance |
| Timeline |
| Mainstay Winslow Large |
| Power Global Tactical |
Mainstay Winslow and Power Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Winslow and Power Global
The main advantage of trading using opposite Mainstay Winslow and Power Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Winslow position performs unexpectedly, Power Global 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 Power Global will offset losses from the drop in Power Global's long position.| Mainstay Winslow vs. Mainstay High Yield | Mainstay Winslow vs. Mainstay Tax Free | Mainstay Winslow vs. Mainstay Income Builder | Mainstay Winslow vs. Mainstay Large Cap |
| Power Global vs. Old Westbury Large | Power Global vs. Principal Lifetime Hybrid | Power Global vs. Aqr Large Cap | Power Global vs. Jhancock Disciplined Value |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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