Correlation Between Great West and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Great West and Mainstay High 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 Great West and Mainstay High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great West Loomis Sayles and Mainstay High Yield, you can compare the effects of market volatilities on Great West and Mainstay High 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 Great West with a short position of Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great West and Mainstay High.
Diversification Opportunities for Great West and Mainstay High
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Great and Mainstay is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Great West Loomis Sayles and Mainstay High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay High Yield and Great West 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 Great West Loomis Sayles are associated (or correlated) with Mainstay High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay High Yield has no effect on the direction of Great West i.e., Great West and Mainstay High go up and down completely randomly.
Pair Corralation between Great West and Mainstay High
Assuming the 90 days horizon Great West Loomis Sayles is expected to generate 3.71 times more return on investment than Mainstay High. However, Great West is 3.71 times more volatile than Mainstay High Yield. It trades about 0.16 of its potential returns per unit of risk. Mainstay High Yield is currently generating about -0.04 per unit of risk. If you would invest 3,865 in Great West Loomis Sayles on August 29, 2024 and sell it today you would earn a total of 352.00 from holding Great West Loomis Sayles or generate 9.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Great West Loomis Sayles vs. Mainstay High Yield
Performance |
| Timeline |
| Great West Loomis |
| Mainstay High Yield |
Great West and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great West and Mainstay High
The main advantage of trading using opposite Great West and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great West position performs unexpectedly, Mainstay High 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 Mainstay High will offset losses from the drop in Mainstay High's long position.| Great West vs. Dreyfus Natural Resources | Great West vs. World Energy Fund | Great West vs. Tortoise Energy Independence | Great West vs. Jennison Natural Resources |
| Mainstay High vs. Ultramid Cap Profund Ultramid Cap | Mainstay High vs. Pace Smallmedium Value | Mainstay High vs. Great West Loomis Sayles | Mainstay High vs. Vanguard Small Cap Value |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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