Correlation Between Mainstay Winslow and Mainstay Short
Can any of the company-specific risk be diversified away by investing in both Mainstay Winslow and Mainstay Short 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 Mainstay Short 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 Mainstay Short Duration, you can compare the effects of market volatilities on Mainstay Winslow and Mainstay Short 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 Mainstay Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Winslow and Mainstay Short.
Diversification Opportunities for Mainstay Winslow and Mainstay Short
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MainStay and Mainstay is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Winslow Large and Mainstay Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Short Duration 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 Mainstay Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Short Duration has no effect on the direction of Mainstay Winslow i.e., Mainstay Winslow and Mainstay Short go up and down completely randomly.
Pair Corralation between Mainstay Winslow and Mainstay Short
Assuming the 90 days horizon Mainstay Winslow Large is expected to generate 11.22 times more return on investment than Mainstay Short. However, Mainstay Winslow is 11.22 times more volatile than Mainstay Short Duration. It trades about 0.09 of its potential returns per unit of risk. Mainstay Short Duration is currently generating about 0.23 per unit of risk. If you would invest 903.00 in Mainstay Winslow Large on August 29, 2024 and sell it today you would earn a total of 202.00 from holding Mainstay Winslow Large or generate 22.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.52% |
| Values | Daily Returns |
Mainstay Winslow Large vs. Mainstay Short Duration
Performance |
| Timeline |
| Mainstay Winslow Large |
| Mainstay Short Duration |
Mainstay Winslow and Mainstay Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Winslow and Mainstay Short
The main advantage of trading using opposite Mainstay Winslow and Mainstay Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Winslow position performs unexpectedly, Mainstay Short 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 Mainstay Short will offset losses from the drop in Mainstay Short's long position.| Mainstay Winslow vs. Power Global Tactical | Mainstay Winslow vs. Wasatch Global Opportunities | Mainstay Winslow vs. Dreyfusstandish Global Fixed | Mainstay Winslow vs. Ab Global Risk |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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