Correlation Between Red Oak and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Red Oak and Mainstay High 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 Red Oak and Mainstay High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Red Oak Technology and Mainstay High Yield, you can compare the effects of market volatilities on Red Oak and Mainstay High 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 Red Oak with a short position of Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Red Oak and Mainstay High.
Diversification Opportunities for Red Oak and Mainstay High
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Red and Mainstay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Red Oak Technology and Mainstay High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay High Yield and Red Oak 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 Red Oak Technology are associated (or correlated) with Mainstay High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay High Yield has no effect on the direction of Red Oak i.e., Red Oak and Mainstay High go up and down completely randomly.
Pair Corralation between Red Oak and Mainstay High
Assuming the 90 days horizon Red Oak Technology is expected to generate 3.73 times more return on investment than Mainstay High. However, Red Oak is 3.73 times more volatile than Mainstay High Yield. It trades about 0.09 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.09 per unit of risk. If you would invest 3,527 in Red Oak Technology on September 12, 2024 and sell it today you would earn a total of 1,421 from holding Red Oak Technology or generate 40.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Red Oak Technology vs. Mainstay High Yield
Performance |
| Timeline |
| Red Oak Technology |
| Mainstay High Yield |
Red Oak and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Red Oak and Mainstay High
The main advantage of trading using opposite Red Oak and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Red Oak position performs unexpectedly, Mainstay High 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 High will offset losses from the drop in Mainstay High's long position.| Red Oak vs. Vanguard Information Technology | Red Oak vs. Technology Portfolio Technology | Red Oak vs. Fidelity Select Semiconductors | Red Oak vs. Software And It |
| Mainstay High vs. Aam Select Income | Mainstay High vs. Arrow Managed Futures | Mainstay High vs. Red Oak Technology | Mainstay High vs. Scharf Global Opportunity |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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