Correlation Between Mainstay Floating and Janus Global
Can any of the company-specific risk be diversified away by investing in both Mainstay Floating and Janus 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 Floating and Janus Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Floating Rate and Janus Global Technology, you can compare the effects of market volatilities on Mainstay Floating and Janus 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 Floating with a short position of Janus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Floating and Janus Global.
Diversification Opportunities for Mainstay Floating and Janus Global
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mainstay and Janus is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Floating Rate and Janus Global Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Global Technology and Mainstay Floating 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 Floating Rate are associated (or correlated) with Janus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Global Technology has no effect on the direction of Mainstay Floating i.e., Mainstay Floating and Janus Global go up and down completely randomly.
Pair Corralation between Mainstay Floating and Janus Global
Assuming the 90 days horizon Mainstay Floating Rate is expected to generate 0.01 times more return on investment than Janus Global. However, Mainstay Floating Rate is 71.69 times less risky than Janus Global. It trades about 0.32 of its potential returns per unit of risk. Janus Global Technology is currently generating about -0.17 per unit of risk. If you would invest 889.00 in Mainstay Floating Rate on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Mainstay Floating Rate or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Floating Rate vs. Janus Global Technology
Performance |
| Timeline |
| Mainstay Floating Rate |
| Janus Global Technology |
Mainstay Floating and Janus Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Floating and Janus Global
The main advantage of trading using opposite Mainstay Floating and Janus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Floating position performs unexpectedly, Janus 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 Janus Global will offset losses from the drop in Janus Global's long position.| Mainstay Floating vs. Janus Global Technology | Mainstay Floating vs. Allianzgi Technology Fund | Mainstay Floating vs. Invesco Technology Fund | Mainstay Floating vs. Global Technology Portfolio |
| Janus Global vs. Janus Global Life | Janus Global vs. Janus Research Fund | Janus Global vs. Janus Enterprise Fund | Janus Global vs. Janus Trarian 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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