Correlation Between Mainstay Growth and Shelton Emerging
Can any of the company-specific risk be diversified away by investing in both Mainstay Growth and Shelton 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 Growth and Shelton Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Growth Etf and Shelton Emerging Markets, you can compare the effects of market volatilities on Mainstay Growth and Shelton 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 Growth with a short position of Shelton Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Growth and Shelton Emerging.
Diversification Opportunities for Mainstay Growth and Shelton Emerging
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mainstay and Shelton is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Growth Etf and Shelton Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton Emerging Markets and Mainstay Growth 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 Growth Etf are associated (or correlated) with Shelton Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Emerging Markets has no effect on the direction of Mainstay Growth i.e., Mainstay Growth and Shelton Emerging go up and down completely randomly.
Pair Corralation between Mainstay Growth and Shelton Emerging
Assuming the 90 days horizon Mainstay Growth Etf is expected to generate 0.56 times more return on investment than Shelton Emerging. However, Mainstay Growth Etf is 1.78 times less risky than Shelton Emerging. It trades about 0.06 of its potential returns per unit of risk. Shelton Emerging Markets is currently generating about -0.06 per unit of risk. If you would invest 1,489 in Mainstay Growth Etf on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Mainstay Growth Etf or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mainstay Growth Etf vs. Shelton Emerging Markets
Performance |
| Timeline |
| Mainstay Growth Etf |
| Shelton Emerging Markets |
Mainstay Growth and Shelton Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Growth and Shelton Emerging
The main advantage of trading using opposite Mainstay Growth and Shelton Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Growth position performs unexpectedly, Shelton 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 Shelton Emerging will offset losses from the drop in Shelton Emerging's long position.| Mainstay Growth vs. Alpsalerian Energy Infrastructure | Mainstay Growth vs. Invesco Energy Fund | Mainstay Growth vs. Goehring Rozencwajg Resources | Mainstay Growth vs. Calvert Global Energy |
| Shelton Emerging vs. Shelton Emerging Markets | Shelton Emerging vs. California Tax Free Income | Shelton Emerging vs. Shelton Funds | Shelton Emerging vs. Nasdaq 100 Index Fund |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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