Correlation Between Ab Small and Mainstay Growth
Can any of the company-specific risk be diversified away by investing in both Ab Small and Mainstay Growth 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 Growth 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 Growth Etf, you can compare the effects of market volatilities on Ab Small and Mainstay Growth 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 Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Small and Mainstay Growth.
Diversification Opportunities for Ab Small and Mainstay Growth
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between QUAIX and Mainstay is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Ab Small Cap and Mainstay Growth Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Growth Etf 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 Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Growth Etf has no effect on the direction of Ab Small i.e., Ab Small and Mainstay Growth go up and down completely randomly.
Pair Corralation between Ab Small and Mainstay Growth
Assuming the 90 days horizon Ab Small Cap is expected to generate 2.17 times more return on investment than Mainstay Growth. However, Ab Small is 2.17 times more volatile than Mainstay Growth Etf. It trades about 0.16 of its potential returns per unit of risk. Mainstay Growth Etf is currently generating about 0.17 per unit of risk. If you would invest 6,901 in Ab Small Cap on September 12, 2024 and sell it today you would earn a total of 890.00 from holding Ab Small Cap or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Small Cap vs. Mainstay Growth Etf
Performance |
| Timeline |
| Ab Small Cap |
| Mainstay Growth Etf |
Ab Small and Mainstay Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Small and Mainstay Growth
The main advantage of trading using opposite Ab Small and Mainstay Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Small position performs unexpectedly, Mainstay Growth 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 Growth will offset losses from the drop in Mainstay Growth's long position.| Ab Small vs. Health Biotchnology Portfolio | Ab Small vs. Prudential Health Sciences | Ab Small vs. Delaware Healthcare Fund | Ab Small vs. Baillie Gifford Health |
| Mainstay Growth vs. Shelton Emerging Markets | Mainstay Growth vs. Black Oak Emerging | Mainstay Growth vs. Vy Jpmorgan Emerging | Mainstay Growth vs. Pnc 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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