Correlation Between Great-west Real and Mainstay Growth
Can any of the company-specific risk be diversified away by investing in both Great-west Real and Mainstay Growth 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 Real and Mainstay Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great West Real Estate and Mainstay Growth Etf, you can compare the effects of market volatilities on Great-west Real and Mainstay Growth 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 Real with a short position of Mainstay Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great-west Real and Mainstay Growth.
Diversification Opportunities for Great-west Real and Mainstay Growth
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Great-west and Mainstay is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Great West Real Estate and Mainstay Growth Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Growth Etf and Great-west Real 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 Real Estate are associated (or correlated) with Mainstay Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Growth Etf has no effect on the direction of Great-west Real i.e., Great-west Real and Mainstay Growth go up and down completely randomly.
Pair Corralation between Great-west Real and Mainstay Growth
Assuming the 90 days horizon Great-west Real is expected to generate 1.55 times less return on investment than Mainstay Growth. In addition to that, Great-west Real is 1.38 times more volatile than Mainstay Growth Etf. It trades about 0.09 of its total potential returns per unit of risk. Mainstay Growth Etf is currently generating about 0.19 per unit of volatility. If you would invest 1,406 in Mainstay Growth Etf on September 2, 2024 and sell it today you would earn a total of 103.00 from holding Mainstay Growth Etf or generate 7.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great West Real Estate vs. Mainstay Growth Etf
Performance |
| Timeline |
| Great West Real |
| Mainstay Growth Etf |
Great-west Real and Mainstay Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great-west Real and Mainstay Growth
The main advantage of trading using opposite Great-west Real and Mainstay Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great-west Real position performs unexpectedly, Mainstay Growth 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 Growth will offset losses from the drop in Mainstay Growth's long position.| Great-west Real vs. Realty Income | Great-west Real vs. Dynex Capital | Great-west Real vs. First Industrial Realty | Great-west Real vs. Healthcare Realty Trust |
| Mainstay Growth vs. Mainstay High Yield | Mainstay Growth vs. Mainstay Tax Free | Mainstay Growth vs. Mainstay Income Builder | Mainstay Growth vs. Mainstay Large Cap |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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