Correlation Between Mainstay New and Invesco Rochester
Can any of the company-specific risk be diversified away by investing in both Mainstay New and Invesco Rochester 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 New and Invesco Rochester into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay New York and Invesco Rochester New, you can compare the effects of market volatilities on Mainstay New and Invesco Rochester 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 New with a short position of Invesco Rochester. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay New and Invesco Rochester.
Diversification Opportunities for Mainstay New and Invesco Rochester
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and Invesco is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay New York and Invesco Rochester New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Rochester New and Mainstay New 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 New York are associated (or correlated) with Invesco Rochester. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Rochester New has no effect on the direction of Mainstay New i.e., Mainstay New and Invesco Rochester go up and down completely randomly.
Pair Corralation between Mainstay New and Invesco Rochester
Assuming the 90 days horizon Mainstay New is expected to generate 1.36 times less return on investment than Invesco Rochester. But when comparing it to its historical volatility, Mainstay New York is 1.35 times less risky than Invesco Rochester. It trades about 0.16 of its potential returns per unit of risk. Invesco Rochester New is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,520 in Invesco Rochester New on September 1, 2024 and sell it today you would earn a total of 27.00 from holding Invesco Rochester New or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mainstay New York vs. Invesco Rochester New
Performance |
| Timeline |
| Mainstay New York |
| Invesco Rochester New |
Mainstay New and Invesco Rochester Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay New and Invesco Rochester
The main advantage of trading using opposite Mainstay New and Invesco Rochester positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay New position performs unexpectedly, Invesco Rochester 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 Invesco Rochester will offset losses from the drop in Invesco Rochester's long position.| Mainstay New vs. Versatile Bond Portfolio | Mainstay New vs. Ab Impact Municipal | Mainstay New vs. Ab Global Bond | Mainstay New vs. Calamos Short Term Bond |
| Invesco Rochester vs. Invesco Municipal Income | Invesco Rochester vs. Invesco Municipal Income | Invesco Rochester vs. Invesco Municipal Income | Invesco Rochester vs. Oppenheimer Rising Dividends |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |