Correlation Between Rbb Fund and Mainstay Government
Can any of the company-specific risk be diversified away by investing in both Rbb Fund and Mainstay Government 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 Rbb Fund and Mainstay Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rbb Fund and Mainstay Government Fund, you can compare the effects of market volatilities on Rbb Fund and Mainstay Government 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 Rbb Fund with a short position of Mainstay Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rbb Fund and Mainstay Government.
Diversification Opportunities for Rbb Fund and Mainstay Government
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rbb and Mainstay is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Rbb Fund and Mainstay Government Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Government and Rbb Fund 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 Rbb Fund are associated (or correlated) with Mainstay Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Government has no effect on the direction of Rbb Fund i.e., Rbb Fund and Mainstay Government go up and down completely randomly.
Pair Corralation between Rbb Fund and Mainstay Government
Assuming the 90 days horizon Rbb Fund is expected to generate 1.01 times less return on investment than Mainstay Government. But when comparing it to its historical volatility, Rbb Fund is 1.88 times less risky than Mainstay Government. It trades about 0.09 of its potential returns per unit of risk. Mainstay Government Fund is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 684.00 in Mainstay Government Fund on September 14, 2024 and sell it today you would earn a total of 67.00 from holding Mainstay Government Fund or generate 9.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rbb Fund vs. Mainstay Government Fund
Performance |
| Timeline |
| Rbb Fund |
| Mainstay Government |
Rbb Fund and Mainstay Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rbb Fund and Mainstay Government
The main advantage of trading using opposite Rbb Fund and Mainstay Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rbb Fund position performs unexpectedly, Mainstay Government 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 Government will offset losses from the drop in Mainstay Government's long position.| Rbb Fund vs. California High Yield Municipal | Rbb Fund vs. Dws Government Money | Rbb Fund vs. Bbh Intermediate Municipal | Rbb Fund vs. T Rowe Price |
| Mainstay Government vs. Abr 7525 Volatility | Mainstay Government vs. Falcon Focus Scv | Mainstay Government vs. Rbc Microcap Value | Mainstay Government vs. Rbb 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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