Correlation Between Mainstay Total and Invesco Technology
Can any of the company-specific risk be diversified away by investing in both Mainstay Total and Invesco Technology 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 Total and Invesco Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Total Return and Invesco Technology Fund, you can compare the effects of market volatilities on Mainstay Total and Invesco Technology 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 Total with a short position of Invesco Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Total and Invesco Technology.
Diversification Opportunities for Mainstay Total and Invesco Technology
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mainstay and Invesco is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Total Return and Invesco Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Technology and Mainstay Total 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 Total Return are associated (or correlated) with Invesco Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Technology has no effect on the direction of Mainstay Total i.e., Mainstay Total and Invesco Technology go up and down completely randomly.
Pair Corralation between Mainstay Total and Invesco Technology
Assuming the 90 days horizon Mainstay Total is expected to generate 4.82 times less return on investment than Invesco Technology. But when comparing it to its historical volatility, Mainstay Total Return is 4.64 times less risky than Invesco Technology. It trades about 0.1 of its potential returns per unit of risk. Invesco Technology Fund is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 6,094 in Invesco Technology Fund on September 1, 2024 and sell it today you would earn a total of 1,259 from holding Invesco Technology Fund or generate 20.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Mainstay Total Return vs. Invesco Technology Fund
Performance |
| Timeline |
| Mainstay Total Return |
| Invesco Technology |
Mainstay Total and Invesco Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Total and Invesco Technology
The main advantage of trading using opposite Mainstay Total and Invesco Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Total position performs unexpectedly, Invesco Technology 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 Technology will offset losses from the drop in Invesco Technology's long position.| Mainstay Total vs. Ultra Short Fixed Income | Mainstay Total vs. Inflation Protected Bond Fund | Mainstay Total vs. T Rowe Price | Mainstay Total vs. Maryland Tax Free Bond |
| Invesco Technology vs. Gamco Global Gold | Invesco Technology vs. Europac Gold Fund | Invesco Technology vs. Gold And Precious | Invesco Technology vs. Global Gold 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |