Correlation Between Old Westbury and Mainstay Moderate
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Mainstay Moderate 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 Old Westbury and Mainstay Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Westbury Municipal and Mainstay Moderate Allocation, you can compare the effects of market volatilities on Old Westbury and Mainstay Moderate 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 Old Westbury with a short position of Mainstay Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Mainstay Moderate.
Diversification Opportunities for Old Westbury and Mainstay Moderate
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Old and MAINSTAY is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Municipal and Mainstay Moderate Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Moderate and Old Westbury 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 Old Westbury Municipal are associated (or correlated) with Mainstay Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Moderate has no effect on the direction of Old Westbury i.e., Old Westbury and Mainstay Moderate go up and down completely randomly.
Pair Corralation between Old Westbury and Mainstay Moderate
Assuming the 90 days horizon Old Westbury is expected to generate 4.23 times less return on investment than Mainstay Moderate. But when comparing it to its historical volatility, Old Westbury Municipal is 3.01 times less risky than Mainstay Moderate. It trades about 0.06 of its potential returns per unit of risk. Mainstay Moderate Allocation is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,188 in Mainstay Moderate Allocation on September 2, 2024 and sell it today you would earn a total of 271.00 from holding Mainstay Moderate Allocation or generate 22.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Westbury Municipal vs. Mainstay Moderate Allocation
Performance |
| Timeline |
| Old Westbury Municipal |
| Mainstay Moderate |
Old Westbury and Mainstay Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Mainstay Moderate
The main advantage of trading using opposite Old Westbury and Mainstay Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Mainstay Moderate 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 Moderate will offset losses from the drop in Mainstay Moderate's long position.| Old Westbury vs. Old Westbury All | Old Westbury vs. Old Westbury California | Old Westbury vs. Old Westbury Credit | Old Westbury vs. Old Westbury Fixed |
| Mainstay Moderate vs. T Rowe Price | Mainstay Moderate vs. Pace Municipal Fixed | Mainstay Moderate vs. Federated Ohio Municipal | Mainstay Moderate vs. Old Westbury Municipal |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |