Correlation Between Mainstay New and Allianzgi Health
Can any of the company-specific risk be diversified away by investing in both Mainstay New and Allianzgi Health 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 Allianzgi Health 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 Allianzgi Health Sciences, you can compare the effects of market volatilities on Mainstay New and Allianzgi Health 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 Allianzgi Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay New and Allianzgi Health.
Diversification Opportunities for Mainstay New and Allianzgi Health
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mainstay and Allianzgi is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay New York and Allianzgi Health Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Health Sciences 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 Allianzgi Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Health Sciences has no effect on the direction of Mainstay New i.e., Mainstay New and Allianzgi Health go up and down completely randomly.
Pair Corralation between Mainstay New and Allianzgi Health
Assuming the 90 days horizon Mainstay New York is expected to generate 0.34 times more return on investment than Allianzgi Health. However, Mainstay New York is 2.94 times less risky than Allianzgi Health. It trades about 0.07 of its potential returns per unit of risk. Allianzgi Health Sciences is currently generating about 0.02 per unit of risk. If you would invest 915.00 in Mainstay New York on September 12, 2024 and sell it today you would earn a total of 64.00 from holding Mainstay New York or generate 6.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay New York vs. Allianzgi Health Sciences
Performance |
| Timeline |
| Mainstay New York |
| Allianzgi Health Sciences |
Mainstay New and Allianzgi Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay New and Allianzgi Health
The main advantage of trading using opposite Mainstay New and Allianzgi Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay New position performs unexpectedly, Allianzgi Health 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 Allianzgi Health will offset losses from the drop in Allianzgi Health's long position.| Mainstay New vs. Allianzgi Health Sciences | Mainstay New vs. Baillie Gifford Health | Mainstay New vs. Alger Health Sciences | Mainstay New vs. Tekla Healthcare Opportunities |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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