Correlation Between Sit Developing and Mainstay Convertible
Can any of the company-specific risk be diversified away by investing in both Sit Developing and Mainstay Convertible 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 Sit Developing and Mainstay Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit Developing Markets and Mainstay Vertible Fund, you can compare the effects of market volatilities on Sit Developing and Mainstay Convertible 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 Sit Developing with a short position of Mainstay Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Developing and Mainstay Convertible.
Diversification Opportunities for Sit Developing and Mainstay Convertible
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sit and Mainstay is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sit Developing Markets and Mainstay Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Convertible and Sit Developing 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 Sit Developing Markets are associated (or correlated) with Mainstay Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Convertible has no effect on the direction of Sit Developing i.e., Sit Developing and Mainstay Convertible go up and down completely randomly.
Pair Corralation between Sit Developing and Mainstay Convertible
Assuming the 90 days horizon Sit Developing is expected to generate 1.39 times less return on investment than Mainstay Convertible. In addition to that, Sit Developing is 1.99 times more volatile than Mainstay Vertible Fund. It trades about 0.02 of its total potential returns per unit of risk. Mainstay Vertible Fund is currently generating about 0.05 per unit of volatility. If you would invest 1,690 in Mainstay Vertible Fund on November 2, 2024 and sell it today you would earn a total of 232.00 from holding Mainstay Vertible Fund or generate 13.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sit Developing Markets vs. Mainstay Vertible Fund
Performance |
| Timeline |
| Sit Developing Markets |
| Mainstay Convertible |
Sit Developing and Mainstay Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit Developing and Mainstay Convertible
The main advantage of trading using opposite Sit Developing and Mainstay Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Developing position performs unexpectedly, Mainstay Convertible 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 Convertible will offset losses from the drop in Mainstay Convertible's long position.| Sit Developing vs. Putnman Retirement Ready | Sit Developing vs. Retirement Living Through | Sit Developing vs. Blackrock Moderate Prepared | Sit Developing vs. Wilmington Trust Retirement |
| Mainstay Convertible vs. Mainstay High Yield | Mainstay Convertible vs. Mainstay Income Builder | Mainstay Convertible vs. Mainstay Sp 500 | Mainstay Convertible 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |