Correlation Between Mainstay Income and Invesco Global
Can any of the company-specific risk be diversified away by investing in both Mainstay Income and Invesco Global 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 Income and Invesco Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Income Builder and Invesco Global Infrastructure, you can compare the effects of market volatilities on Mainstay Income and Invesco Global 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 Income with a short position of Invesco Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Income and Invesco Global.
Diversification Opportunities for Mainstay Income and Invesco Global
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mainstay and Invesco is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Income Builder and Invesco Global Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Global Infra and Mainstay Income 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 Income Builder are associated (or correlated) with Invesco Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Global Infra has no effect on the direction of Mainstay Income i.e., Mainstay Income and Invesco Global go up and down completely randomly.
Pair Corralation between Mainstay Income and Invesco Global
Assuming the 90 days horizon Mainstay Income Builder is expected to generate 0.67 times more return on investment than Invesco Global. However, Mainstay Income Builder is 1.49 times less risky than Invesco Global. It trades about 0.09 of its potential returns per unit of risk. Invesco Global Infrastructure is currently generating about 0.04 per unit of risk. If you would invest 1,686 in Mainstay Income Builder on August 30, 2024 and sell it today you would earn a total of 420.00 from holding Mainstay Income Builder or generate 24.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Income Builder vs. Invesco Global Infrastructure
Performance |
| Timeline |
| Mainstay Income Builder |
| Invesco Global Infra |
Mainstay Income and Invesco Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Income and Invesco Global
The main advantage of trading using opposite Mainstay Income and Invesco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Income position performs unexpectedly, Invesco Global 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 Global will offset losses from the drop in Invesco Global's long position.| Mainstay Income vs. Capital Income Builder | Mainstay Income vs. Capital Income Builder | Mainstay Income vs. Capital Income Builder | Mainstay Income vs. HUMANA INC |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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