Correlation Between Pace Smallmedium and Mainstay Fiera
Can any of the company-specific risk be diversified away by investing in both Pace Smallmedium and Mainstay Fiera 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 Pace Smallmedium and Mainstay Fiera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pace Smallmedium Growth and Mainstay Fiera Smid, you can compare the effects of market volatilities on Pace Smallmedium and Mainstay Fiera 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 Pace Smallmedium with a short position of Mainstay Fiera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pace Smallmedium and Mainstay Fiera.
Diversification Opportunities for Pace Smallmedium and Mainstay Fiera
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Pace and Mainstay is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Pace Smallmedium Growth and Mainstay Fiera Smid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Fiera Smid and Pace Smallmedium 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 Pace Smallmedium Growth are associated (or correlated) with Mainstay Fiera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Fiera Smid has no effect on the direction of Pace Smallmedium i.e., Pace Smallmedium and Mainstay Fiera go up and down completely randomly.
Pair Corralation between Pace Smallmedium and Mainstay Fiera
Assuming the 90 days horizon Pace Smallmedium Growth is expected to generate 0.83 times more return on investment than Mainstay Fiera. However, Pace Smallmedium Growth is 1.21 times less risky than Mainstay Fiera. It trades about 0.02 of its potential returns per unit of risk. Mainstay Fiera Smid is currently generating about -0.04 per unit of risk. If you would invest 1,408 in Pace Smallmedium Growth on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Pace Smallmedium Growth or generate 0.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pace Smallmedium Growth vs. Mainstay Fiera Smid
Performance |
| Timeline |
| Pace Smallmedium Growth |
| Mainstay Fiera Smid |
Pace Smallmedium and Mainstay Fiera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pace Smallmedium and Mainstay Fiera
The main advantage of trading using opposite Pace Smallmedium and Mainstay Fiera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pace Smallmedium position performs unexpectedly, Mainstay Fiera 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 Fiera will offset losses from the drop in Mainstay Fiera's long position.| Pace Smallmedium vs. Needham Aggressive Growth | Pace Smallmedium vs. Ultramid Cap Profund Ultramid Cap | Pace Smallmedium vs. HUMANA INC | Pace Smallmedium vs. Barloworld Ltd ADR |
| Mainstay Fiera vs. Origin Emerging Markets | Mainstay Fiera vs. Siit Emerging Markets | Mainstay Fiera vs. Black Oak Emerging | Mainstay Fiera vs. Doubleline 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |