Correlation Between 1919 Financial and Mainstay Map
Can any of the company-specific risk be diversified away by investing in both 1919 Financial 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 1919 Financial and Mainstay Map into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1919 Financial Services and Mainstay Map Equity, you can compare the effects of market volatilities on 1919 Financial 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 1919 Financial with a short position of Mainstay Map. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1919 Financial and Mainstay Map.
Diversification Opportunities for 1919 Financial and Mainstay Map
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 1919 and Mainstay is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding 1919 Financial Services 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 1919 Financial 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 1919 Financial Services 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 1919 Financial i.e., 1919 Financial and Mainstay Map go up and down completely randomly.
Pair Corralation between 1919 Financial and Mainstay Map
Assuming the 90 days horizon 1919 Financial Services is expected to generate 1.65 times more return on investment than Mainstay Map. However, 1919 Financial is 1.65 times more volatile than Mainstay Map Equity. It trades about 0.23 of its potential returns per unit of risk. Mainstay Map Equity is currently generating about 0.19 per unit of risk. If you would invest 2,759 in 1919 Financial Services on September 5, 2024 and sell it today you would earn a total of 643.00 from holding 1919 Financial Services or generate 23.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.82% |
| Values | Daily Returns |
1919 Financial Services vs. Mainstay Map Equity
Performance |
| Timeline |
| 1919 Financial Services |
| Mainstay Map Equity |
1919 Financial and Mainstay Map Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1919 Financial and Mainstay Map
The main advantage of trading using opposite 1919 Financial and Mainstay Map positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1919 Financial 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.| 1919 Financial vs. General Money Market | 1919 Financial vs. Hsbc Treasury Money | 1919 Financial vs. John Hancock Money | 1919 Financial vs. Rbc Funds Trust |
| Mainstay Map vs. Transamerica Financial Life | Mainstay Map vs. Davis Financial Fund | Mainstay Map vs. 1919 Financial Services | Mainstay Map vs. Blackrock Financial Institutions |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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