Correlation Between Mainstay Equity and Pace International
Can any of the company-specific risk be diversified away by investing in both Mainstay Equity and Pace International 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 Equity and Pace International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Equity Etf and Pace International Emerging, you can compare the effects of market volatilities on Mainstay Equity and Pace International 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 Equity with a short position of Pace International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Equity and Pace International.
Diversification Opportunities for Mainstay Equity and Pace International
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mainstay and Pace is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Equity Etf and Pace International Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pace International and Mainstay Equity 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 Equity Etf are associated (or correlated) with Pace International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pace International has no effect on the direction of Mainstay Equity i.e., Mainstay Equity and Pace International go up and down completely randomly.
Pair Corralation between Mainstay Equity and Pace International
Assuming the 90 days horizon Mainstay Equity Etf is expected to generate 0.9 times more return on investment than Pace International. However, Mainstay Equity Etf is 1.11 times less risky than Pace International. It trades about 0.1 of its potential returns per unit of risk. Pace International Emerging is currently generating about 0.02 per unit of risk. If you would invest 1,473 in Mainstay Equity Etf on August 31, 2024 and sell it today you would earn a total of 154.00 from holding Mainstay Equity Etf or generate 10.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Equity Etf vs. Pace International Emerging
Performance |
| Timeline |
| Mainstay Equity Etf |
| Pace International |
Mainstay Equity and Pace International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Equity and Pace International
The main advantage of trading using opposite Mainstay Equity and Pace International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Equity position performs unexpectedly, Pace International 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 Pace International will offset losses from the drop in Pace International's long position.| Mainstay Equity vs. Franklin Real Estate | Mainstay Equity vs. Tiaa Cref Real Estate | Mainstay Equity vs. Fidelity Real Estate | Mainstay Equity vs. Commonwealth Real Estate |
| Pace International vs. Strategic Allocation Aggressive | Pace International vs. T Rowe Price | Pace International vs. Federated Kaufmann Large | Pace International vs. Alternative Asset Allocation |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |