Correlation Between Mainstay Large and Origin Emerging
Can any of the company-specific risk be diversified away by investing in both Mainstay Large and Origin Emerging 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 Origin Emerging 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 Origin Emerging Markets, you can compare the effects of market volatilities on Mainstay Large and Origin Emerging 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 Origin Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Large and Origin Emerging.
Diversification Opportunities for Mainstay Large and Origin Emerging
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mainstay and Origin is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Large Cap and Origin Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Emerging Markets 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 Origin Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Emerging Markets has no effect on the direction of Mainstay Large i.e., Mainstay Large and Origin Emerging go up and down completely randomly.
Pair Corralation between Mainstay Large and Origin Emerging
Assuming the 90 days horizon Mainstay Large is expected to generate 1.16 times less return on investment than Origin Emerging. In addition to that, Mainstay Large is 1.69 times more volatile than Origin Emerging Markets. It trades about 0.04 of its total potential returns per unit of risk. Origin Emerging Markets is currently generating about 0.07 per unit of volatility. If you would invest 897.00 in Origin Emerging Markets on September 14, 2024 and sell it today you would earn a total of 154.00 from holding Origin Emerging Markets or generate 17.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Large Cap vs. Origin Emerging Markets
Performance |
| Timeline |
| Mainstay Large Cap |
| Origin Emerging Markets |
Mainstay Large and Origin Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Large and Origin Emerging
The main advantage of trading using opposite Mainstay Large and Origin Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Large position performs unexpectedly, Origin Emerging 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 Origin Emerging will offset losses from the drop in Origin Emerging's long position.| Mainstay Large vs. Origin Emerging Markets | Mainstay Large vs. Nasdaq 100 2x Strategy | Mainstay Large vs. Pace International Emerging | Mainstay Large vs. Ashmore Emerging Markets |
| Origin Emerging vs. Western Asset Diversified | Origin Emerging vs. Ep Emerging Markets | Origin Emerging vs. Ab All Market | Origin Emerging vs. Rbc Emerging Markets |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |