Correlation Between Virtus Real and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Virtus Real 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 Virtus Real and Mainstay High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Real Estate and Mainstay High Yield, you can compare the effects of market volatilities on Virtus Real 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 Virtus Real with a short position of Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Real and Mainstay High.
Diversification Opportunities for Virtus Real and Mainstay High
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Virtus and Mainstay is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Real Estate 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 Virtus 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 Virtus Real Estate 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 Virtus Real i.e., Virtus Real and Mainstay High go up and down completely randomly.
Pair Corralation between Virtus Real and Mainstay High
Assuming the 90 days horizon Virtus Real Estate is expected to generate 2.02 times more return on investment than Mainstay High. However, Virtus Real is 2.02 times more volatile than Mainstay High Yield. It trades about 0.29 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.16 per unit of risk. If you would invest 2,087 in Virtus Real Estate on September 3, 2024 and sell it today you would earn a total of 105.00 from holding Virtus Real Estate or generate 5.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Real Estate vs. Mainstay High Yield
Performance |
| Timeline |
| Virtus Real Estate |
| Mainstay High Yield |
Virtus Real and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Real and Mainstay High
The main advantage of trading using opposite Virtus Real and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Real 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.| Virtus Real vs. Us Government Securities | Virtus Real vs. John Hancock Government | Virtus Real vs. Dunham Porategovernment Bond | Virtus Real vs. Fidelity Series Government |
| Mainstay High vs. Nuveen High Yield | Mainstay High vs. Nuveen High Yield | Mainstay High vs. Nuveen High Yield | Mainstay High vs. American High Income 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stocks Directory Find actively traded stocks across global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |