Correlation Between Versatile Bond and Mainstay Candriam
Can any of the company-specific risk be diversified away by investing in both Versatile Bond and Mainstay Candriam 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 Versatile Bond and Mainstay Candriam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Versatile Bond Portfolio and Mainstay Candriam Emerging, you can compare the effects of market volatilities on Versatile Bond and Mainstay Candriam 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 Versatile Bond with a short position of Mainstay Candriam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Versatile Bond and Mainstay Candriam.
Diversification Opportunities for Versatile Bond and Mainstay Candriam
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Versatile and Mainstay is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Versatile Bond Portfolio and Mainstay Candriam Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Candriam and Versatile Bond 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 Versatile Bond Portfolio are associated (or correlated) with Mainstay Candriam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Candriam has no effect on the direction of Versatile Bond i.e., Versatile Bond and Mainstay Candriam go up and down completely randomly.
Pair Corralation between Versatile Bond and Mainstay Candriam
Assuming the 90 days horizon Versatile Bond Portfolio is expected to generate 0.17 times more return on investment than Mainstay Candriam. However, Versatile Bond Portfolio is 5.85 times less risky than Mainstay Candriam. It trades about 0.08 of its potential returns per unit of risk. Mainstay Candriam Emerging is currently generating about -0.2 per unit of risk. If you would invest 6,458 in Versatile Bond Portfolio on September 4, 2024 and sell it today you would earn a total of 12.00 from holding Versatile Bond Portfolio or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Versatile Bond Portfolio vs. Mainstay Candriam Emerging
Performance |
| Timeline |
| Versatile Bond Portfolio |
| Mainstay Candriam |
Versatile Bond and Mainstay Candriam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Versatile Bond and Mainstay Candriam
The main advantage of trading using opposite Versatile Bond and Mainstay Candriam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Versatile Bond position performs unexpectedly, Mainstay Candriam 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 Candriam will offset losses from the drop in Mainstay Candriam's long position.| Versatile Bond vs. Permanent Portfolio Class | Versatile Bond vs. Permanent Portfolio Class | Versatile Bond vs. Permanent Portfolio Class | Versatile Bond vs. Short Term Treasury Portfolio |
| Mainstay Candriam vs. Gmo High Yield | Mainstay Candriam vs. Ppm High Yield | Mainstay Candriam vs. Calvert High Yield | Mainstay Candriam vs. Lord Abbett High |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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