Correlation Between Ab Small and Mainstay Winslow
Can any of the company-specific risk be diversified away by investing in both Ab Small and Mainstay Winslow 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 Winslow 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 Winslow Large, you can compare the effects of market volatilities on Ab Small and Mainstay Winslow 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 Winslow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Small and Mainstay Winslow.
Diversification Opportunities for Ab Small and Mainstay Winslow
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between QUAIX and Mainstay is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Ab Small Cap and Mainstay Winslow Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Winslow Large 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 Winslow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Winslow Large has no effect on the direction of Ab Small i.e., Ab Small and Mainstay Winslow go up and down completely randomly.
Pair Corralation between Ab Small and Mainstay Winslow
Assuming the 90 days horizon Ab Small Cap is expected to generate 1.15 times more return on investment than Mainstay Winslow. However, Ab Small is 1.15 times more volatile than Mainstay Winslow Large. It trades about 0.11 of its potential returns per unit of risk. Mainstay Winslow Large is currently generating about 0.12 per unit of risk. If you would invest 5,674 in Ab Small Cap on September 2, 2024 and sell it today you would earn a total of 2,236 from holding Ab Small Cap or generate 39.41% 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 Winslow Large
Performance |
| Timeline |
| Ab Small Cap |
| Mainstay Winslow Large |
Ab Small and Mainstay Winslow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Small and Mainstay Winslow
The main advantage of trading using opposite Ab Small and Mainstay Winslow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Small position performs unexpectedly, Mainstay Winslow 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 Winslow will offset losses from the drop in Mainstay Winslow's long position.| Ab Small vs. Dreyfus Institutional Reserves | Ab Small vs. Ashmore Emerging Markets | Ab Small vs. Meeder Funds | Ab Small vs. Jpmorgan Trust I |
| Mainstay Winslow vs. Mainstay High Yield | Mainstay Winslow vs. Mainstay Tax Free | Mainstay Winslow vs. Mainstay Income Builder | Mainstay Winslow vs. Mainstay Large 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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