Correlation Between Mainstay Growth and Oil Gas
Can any of the company-specific risk be diversified away by investing in both Mainstay Growth and Oil Gas 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 Oil Gas 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 Oil Gas Ultrasector, you can compare the effects of market volatilities on Mainstay Growth and Oil Gas 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 Oil Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Growth and Oil Gas.
Diversification Opportunities for Mainstay Growth and Oil Gas
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Oil is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Growth Etf and Oil Gas Ultrasector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oil Gas Ultrasector 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 Oil Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oil Gas Ultrasector has no effect on the direction of Mainstay Growth i.e., Mainstay Growth and Oil Gas go up and down completely randomly.
Pair Corralation between Mainstay Growth and Oil Gas
Assuming the 90 days horizon Mainstay Growth Etf is expected to generate 0.3 times more return on investment than Oil Gas. However, Mainstay Growth Etf is 3.37 times less risky than Oil Gas. It trades about 0.09 of its potential returns per unit of risk. Oil Gas Ultrasector is currently generating about -0.21 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 11.00 from holding Mainstay Growth Etf or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Growth Etf vs. Oil Gas Ultrasector
Performance |
| Timeline |
| Mainstay Growth Etf |
| Oil Gas Ultrasector |
Mainstay Growth and Oil Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Growth and Oil Gas
The main advantage of trading using opposite Mainstay Growth and Oil Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Growth position performs unexpectedly, Oil Gas 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 Oil Gas will offset losses from the drop in Oil Gas' long position.| Mainstay Growth vs. Shelton Emerging Markets | Mainstay Growth vs. Black Oak Emerging | Mainstay Growth vs. Vy Jpmorgan Emerging | Mainstay Growth vs. Pnc Emerging Markets |
| Oil Gas vs. Ultramid Cap Profund Ultramid Cap | Oil Gas vs. Precious Metals Ultrasector | Oil Gas vs. Real Estate Ultrasector | Oil Gas vs. Fidelity Advisor Energy |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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