Correlation Between Us Strategic and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Us Strategic 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 Us Strategic and Mainstay High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Us Strategic Equity and Mainstay High Yield, you can compare the effects of market volatilities on Us Strategic 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 Us Strategic with a short position of Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Us Strategic and Mainstay High.
Diversification Opportunities for Us Strategic and Mainstay High
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between RUSTX and Mainstay is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Us Strategic Equity 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 Us Strategic 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 Us Strategic Equity 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 Us Strategic i.e., Us Strategic and Mainstay High go up and down completely randomly.
Pair Corralation between Us Strategic and Mainstay High
Assuming the 90 days horizon Us Strategic Equity is expected to generate 2.06 times more return on investment than Mainstay High. However, Us Strategic is 2.06 times more volatile than Mainstay High Yield. It trades about 0.38 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.17 per unit of risk. If you would invest 1,781 in Us Strategic Equity on September 4, 2024 and sell it today you would earn a total of 110.00 from holding Us Strategic Equity or generate 6.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Us Strategic Equity vs. Mainstay High Yield
Performance |
| Timeline |
| Us Strategic Equity |
| Mainstay High Yield |
Us Strategic and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Us Strategic and Mainstay High
The main advantage of trading using opposite Us Strategic and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Us Strategic 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.| Us Strategic vs. Dreyfus Natural Resources | Us Strategic vs. Adams Natural Resources | Us Strategic vs. Icon Natural Resources | Us Strategic vs. Calvert Global Energy |
| Mainstay High vs. Mainstay Tax Free | Mainstay High vs. Mainstay Large Cap | Mainstay High vs. Mainstay Large Cap | Mainstay High 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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