Correlation Between Commodityrealreturn and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Commodityrealreturn 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 Commodityrealreturn and Mainstay High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commodityrealreturn Strategy Fund and Mainstay High Yield, you can compare the effects of market volatilities on Commodityrealreturn 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 Commodityrealreturn with a short position of Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commodityrealreturn and Mainstay High.
Diversification Opportunities for Commodityrealreturn and Mainstay High
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Commodityrealreturn and Mainstay is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Commodityrealreturn Strategy F 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 Commodityrealreturn 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 Commodityrealreturn Strategy Fund 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 Commodityrealreturn i.e., Commodityrealreturn and Mainstay High go up and down completely randomly.
Pair Corralation between Commodityrealreturn and Mainstay High
Assuming the 90 days horizon Commodityrealreturn is expected to generate 1.08 times less return on investment than Mainstay High. In addition to that, Commodityrealreturn is 3.99 times more volatile than Mainstay High Yield. It trades about 0.04 of its total potential returns per unit of risk. Mainstay High Yield is currently generating about 0.17 per unit of volatility. If you would invest 460.00 in Mainstay High Yield on September 4, 2024 and sell it today you would earn a total of 65.00 from holding Mainstay High Yield or generate 14.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Commodityrealreturn Strategy F vs. Mainstay High Yield
Performance |
| Timeline |
| Commodityrealreturn |
| Mainstay High Yield |
Commodityrealreturn and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commodityrealreturn and Mainstay High
The main advantage of trading using opposite Commodityrealreturn and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commodityrealreturn 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.| Commodityrealreturn vs. Mfs Emerging Markets | Commodityrealreturn vs. Emerging Markets Bond | Commodityrealreturn vs. Aquagold International | Commodityrealreturn vs. Morningstar Unconstrained Allocation |
| Mainstay High vs. Balanced Fund Investor | Mainstay High vs. Volumetric Fund Volumetric | Mainstay High vs. Omni Small Cap Value | Mainstay High vs. Small Cap Stock |
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.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |