Correlation Between Origin Emerging and Mainstay Moderate
Can any of the company-specific risk be diversified away by investing in both Origin Emerging 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 Origin Emerging and Mainstay Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Emerging Markets and Mainstay Moderate Allocation, you can compare the effects of market volatilities on Origin Emerging 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 Origin Emerging with a short position of Mainstay Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Emerging and Mainstay Moderate.
Diversification Opportunities for Origin Emerging and Mainstay Moderate
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Origin and Mainstay is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Origin Emerging Markets and Mainstay Moderate Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Moderate and Origin Emerging 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 Origin Emerging Markets 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 Origin Emerging i.e., Origin Emerging and Mainstay Moderate go up and down completely randomly.
Pair Corralation between Origin Emerging and Mainstay Moderate
Assuming the 90 days horizon Origin Emerging Markets is expected to under-perform the Mainstay Moderate. In addition to that, Origin Emerging is 1.92 times more volatile than Mainstay Moderate Allocation. It trades about -0.02 of its total potential returns per unit of risk. Mainstay Moderate Allocation is currently generating about 0.37 per unit of volatility. If you would invest 1,435 in Mainstay Moderate Allocation on September 1, 2024 and sell it today you would earn a total of 51.00 from holding Mainstay Moderate Allocation or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Emerging Markets vs. Mainstay Moderate Allocation
Performance |
| Timeline |
| Origin Emerging Markets |
| Mainstay Moderate |
Origin Emerging and Mainstay Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Emerging and Mainstay Moderate
The main advantage of trading using opposite Origin Emerging and Mainstay Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Emerging 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.| Origin Emerging vs. Meeder Funds | Origin Emerging vs. Dws Government Money | Origin Emerging vs. Lord Abbett Govt | Origin Emerging vs. Ashmore Emerging Markets |
| Mainstay Moderate vs. Investec Emerging Markets | Mainstay Moderate vs. Pnc Emerging Markets | Mainstay Moderate vs. Shelton Emerging Markets | Mainstay Moderate vs. Origin Emerging Markets |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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