Correlation Between Mainstay Total and Invesco Gold
Can any of the company-specific risk be diversified away by investing in both Mainstay Total and Invesco Gold 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 Gold 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 Gold Special, you can compare the effects of market volatilities on Mainstay Total and Invesco Gold 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 Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Total and Invesco Gold.
Diversification Opportunities for Mainstay Total and Invesco Gold
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mainstay and Invesco is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Total Return and Invesco Gold Special in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Gold Special 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 Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Gold Special has no effect on the direction of Mainstay Total i.e., Mainstay Total and Invesco Gold go up and down completely randomly.
Pair Corralation between Mainstay Total and Invesco Gold
Assuming the 90 days horizon Mainstay Total Return is expected to generate 0.18 times more return on investment than Invesco Gold. However, Mainstay Total Return is 5.51 times less risky than Invesco Gold. It trades about 0.16 of its potential returns per unit of risk. Invesco Gold Special is currently generating about -0.11 per unit of risk. If you would invest 910.00 in Mainstay Total Return on September 2, 2024 and sell it today you would earn a total of 11.00 from holding Mainstay Total Return or generate 1.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Total Return vs. Invesco Gold Special
Performance |
| Timeline |
| Mainstay Total Return |
| Invesco Gold Special |
Mainstay Total and Invesco Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Total and Invesco Gold
The main advantage of trading using opposite Mainstay Total and Invesco Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Total position performs unexpectedly, Invesco Gold 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 Gold will offset losses from the drop in Invesco Gold's long position.| Mainstay Total vs. Invesco Gold Special | Mainstay Total vs. Precious Metals And | Mainstay Total vs. Europac Gold Fund | Mainstay Total vs. International Investors Gold |
| Invesco Gold vs. Barings Active Short | Invesco Gold vs. Quantitative Longshort Equity | Invesco Gold vs. Chartwell Short Duration | Invesco Gold vs. Federated Ultrashort Bond |
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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