Correlation Between Commodities Strategy and Mainstay Candriam
Can any of the company-specific risk be diversified away by investing in both Commodities Strategy and Mainstay Candriam 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 Commodities Strategy and Mainstay Candriam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commodities Strategy Fund and Mainstay Candriam Emerging, you can compare the effects of market volatilities on Commodities Strategy and Mainstay Candriam 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 Commodities Strategy with a short position of Mainstay Candriam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commodities Strategy and Mainstay Candriam.
Diversification Opportunities for Commodities Strategy and Mainstay Candriam
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Commodities and Mainstay is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Commodities Strategy Fund and Mainstay Candriam Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Candriam and Commodities Strategy 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 Commodities Strategy Fund are associated (or correlated) with Mainstay Candriam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Candriam has no effect on the direction of Commodities Strategy i.e., Commodities Strategy and Mainstay Candriam go up and down completely randomly.
Pair Corralation between Commodities Strategy and Mainstay Candriam
Assuming the 90 days horizon Commodities Strategy Fund is expected to under-perform the Mainstay Candriam. In addition to that, Commodities Strategy is 1.1 times more volatile than Mainstay Candriam Emerging. It trades about -0.01 of its total potential returns per unit of risk. Mainstay Candriam Emerging is currently generating about 0.03 per unit of volatility. If you would invest 975.00 in Mainstay Candriam Emerging on September 1, 2024 and sell it today you would earn a total of 26.00 from holding Mainstay Candriam Emerging or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Commodities Strategy Fund vs. Mainstay Candriam Emerging
Performance |
| Timeline |
| Commodities Strategy |
| Mainstay Candriam |
Commodities Strategy and Mainstay Candriam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commodities Strategy and Mainstay Candriam
The main advantage of trading using opposite Commodities Strategy and Mainstay Candriam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commodities Strategy position performs unexpectedly, Mainstay Candriam 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 Candriam will offset losses from the drop in Mainstay Candriam's long position.| Commodities Strategy vs. Basic Materials Fund | Commodities Strategy vs. Energy Services Fund | Commodities Strategy vs. Energy Fund Investor | Commodities Strategy vs. Real Estate Fund |
| Mainstay Candriam vs. Mainstay Large Cap | Mainstay Candriam vs. Mainstay Large Cap | Mainstay Candriam vs. Mainstay Large Cap | Mainstay Candriam 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 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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