Correlation Between Inverse Government and Mainstay Map
Can any of the company-specific risk be diversified away by investing in both Inverse Government and Mainstay Map 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 Inverse Government and Mainstay Map into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inverse Government Long and Mainstay Map Equity, you can compare the effects of market volatilities on Inverse Government and Mainstay Map 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 Inverse Government with a short position of Mainstay Map. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inverse Government and Mainstay Map.
Diversification Opportunities for Inverse Government and Mainstay Map
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inverse and Mainstay is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Inverse Government Long and Mainstay Map Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Map Equity and Inverse Government 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 Inverse Government Long are associated (or correlated) with Mainstay Map. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Map Equity has no effect on the direction of Inverse Government i.e., Inverse Government and Mainstay Map go up and down completely randomly.
Pair Corralation between Inverse Government and Mainstay Map
Assuming the 90 days horizon Inverse Government is expected to generate 7.33 times less return on investment than Mainstay Map. In addition to that, Inverse Government is 1.25 times more volatile than Mainstay Map Equity. It trades about 0.02 of its total potential returns per unit of risk. Mainstay Map Equity is currently generating about 0.14 per unit of volatility. If you would invest 2,002 in Mainstay Map Equity on September 2, 2024 and sell it today you would earn a total of 269.00 from holding Mainstay Map Equity or generate 13.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inverse Government Long vs. Mainstay Map Equity
Performance |
| Timeline |
| Inverse Government Long |
| Mainstay Map Equity |
Inverse Government and Mainstay Map Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inverse Government and Mainstay Map
The main advantage of trading using opposite Inverse Government and Mainstay Map positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inverse Government position performs unexpectedly, Mainstay Map 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 Map will offset losses from the drop in Mainstay Map's long position.| Inverse Government vs. T Rowe Price | Inverse Government vs. Ms Global Fixed | Inverse Government vs. Morgan Stanley Global | Inverse Government vs. Artisan Global Unconstrained |
| Mainstay Map vs. Mainstay High Yield | Mainstay Map vs. Mainstay Tax Free | Mainstay Map vs. Mainstay Income Builder | Mainstay Map 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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