Correlation Between Ab Small and Mainstay Balanced
Can any of the company-specific risk be diversified away by investing in both Ab Small and Mainstay Balanced 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 Ab Small and Mainstay Balanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Small Cap and Mainstay Balanced Fund, you can compare the effects of market volatilities on Ab Small and Mainstay Balanced 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 Ab Small with a short position of Mainstay Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Small and Mainstay Balanced.
Diversification Opportunities for Ab Small and Mainstay Balanced
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between QUAIX and Mainstay is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Ab Small Cap and Mainstay Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Balanced and Ab Small 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 Ab Small Cap are associated (or correlated) with Mainstay Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Balanced has no effect on the direction of Ab Small i.e., Ab Small and Mainstay Balanced go up and down completely randomly.
Pair Corralation between Ab Small and Mainstay Balanced
Assuming the 90 days horizon Ab Small Cap is expected to generate 3.08 times more return on investment than Mainstay Balanced. However, Ab Small is 3.08 times more volatile than Mainstay Balanced Fund. It trades about 0.2 of its potential returns per unit of risk. Mainstay Balanced Fund is currently generating about 0.2 per unit of risk. If you would invest 7,363 in Ab Small Cap on August 29, 2024 and sell it today you would earn a total of 545.00 from holding Ab Small Cap or generate 7.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Small Cap vs. Mainstay Balanced Fund
Performance |
| Timeline |
| Ab Small Cap |
| Mainstay Balanced |
Ab Small and Mainstay Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Small and Mainstay Balanced
The main advantage of trading using opposite Ab Small and Mainstay Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Small position performs unexpectedly, Mainstay Balanced 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 Balanced will offset losses from the drop in Mainstay Balanced's long position.| Ab Small vs. Putnam Equity Income | Ab Small vs. Putnam Growth Opportunities | Ab Small vs. HUMANA INC | Ab Small vs. Aquagold International |
| Mainstay Balanced vs. Baird Smallmid Cap | Mainstay Balanced vs. Gmo Small Cap | Mainstay Balanced vs. The Hartford Small | Mainstay Balanced vs. Ab Small Cap |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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