Correlation Between Mainstay Equity and Saat Core
Can any of the company-specific risk be diversified away by investing in both Mainstay Equity and Saat Core 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 Saat Core 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 Saat E Market, you can compare the effects of market volatilities on Mainstay Equity and Saat Core 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 Saat Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Equity and Saat Core.
Diversification Opportunities for Mainstay Equity and Saat Core
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Saat is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Equity Etf and Saat E Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat E Market 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 Saat Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat E Market has no effect on the direction of Mainstay Equity i.e., Mainstay Equity and Saat Core go up and down completely randomly.
Pair Corralation between Mainstay Equity and Saat Core
Assuming the 90 days horizon Mainstay Equity Etf is expected to generate 1.04 times more return on investment than Saat Core. However, Mainstay Equity is 1.04 times more volatile than Saat E Market. It trades about 0.07 of its potential returns per unit of risk. Saat E Market is currently generating about 0.04 per unit of risk. If you would invest 1,205 in Mainstay Equity Etf on August 24, 2024 and sell it today you would earn a total of 391.00 from holding Mainstay Equity Etf or generate 32.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Mainstay Equity Etf vs. Saat E Market
Performance |
| Timeline |
| Mainstay Equity Etf |
| Saat E Market |
Mainstay Equity and Saat Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Equity and Saat Core
The main advantage of trading using opposite Mainstay Equity and Saat Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Equity position performs unexpectedly, Saat Core 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 Saat Core will offset losses from the drop in Saat Core's long position.| Mainstay Equity vs. Saat E Market | Mainstay Equity vs. Saat Aggressive Strategy | Mainstay Equity vs. HUMANA INC | Mainstay Equity vs. Aquagold International |
| Saat Core vs. Saat Aggressive Strategy | Saat Core vs. HUMANA INC | Saat Core vs. Aquagold International | Saat Core vs. Barloworld Ltd ADR |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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