Correlation Between 1919 Financial and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both 1919 Financial and Mainstay Large 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 Large 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 Large Cap, you can compare the effects of market volatilities on 1919 Financial and Mainstay Large 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 Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1919 Financial and Mainstay Large.
Diversification Opportunities for 1919 Financial and Mainstay Large
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 1919 and Mainstay is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding 1919 Financial Services and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap 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 Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of 1919 Financial i.e., 1919 Financial and Mainstay Large go up and down completely randomly.
Pair Corralation between 1919 Financial and Mainstay Large
Assuming the 90 days horizon 1919 Financial Services is expected to generate 0.66 times more return on investment than Mainstay Large. However, 1919 Financial Services is 1.51 times less risky than Mainstay Large. It trades about 0.08 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about -0.03 per unit of risk. If you would invest 2,635 in 1919 Financial Services on September 14, 2024 and sell it today you would earn a total of 359.00 from holding 1919 Financial Services or generate 13.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
1919 Financial Services vs. Mainstay Large Cap
Performance |
| Timeline |
| 1919 Financial Services |
| Mainstay Large Cap |
1919 Financial and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1919 Financial and Mainstay Large
The main advantage of trading using opposite 1919 Financial and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1919 Financial position performs unexpectedly, Mainstay Large 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 Large will offset losses from the drop in Mainstay Large's long position.| 1919 Financial vs. Jhancock Diversified Macro | 1919 Financial vs. Small Cap Stock | 1919 Financial vs. Oaktree Diversifiedome | 1919 Financial vs. Tiaa Cref Small Cap Blend |
| Mainstay Large vs. Boston Partners Small | Mainstay Large vs. Goldman Sachs Small | Mainstay Large vs. Lsv Small Cap | Mainstay Large vs. Mutual Of America |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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