Correlation Between Simt Real and Mainstay Common
Can any of the company-specific risk be diversified away by investing in both Simt Real and Mainstay Common 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 Simt Real and Mainstay Common into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Real Estate and Mainstay Mon Stock, you can compare the effects of market volatilities on Simt Real and Mainstay Common 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 Simt Real with a short position of Mainstay Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Real and Mainstay Common.
Diversification Opportunities for Simt Real and Mainstay Common
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Simt and MAINSTAY is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Simt Real Estate and Mainstay Mon Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mon Stock and Simt Real 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 Simt Real Estate are associated (or correlated) with Mainstay Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Mon Stock has no effect on the direction of Simt Real i.e., Simt Real and Mainstay Common go up and down completely randomly.
Pair Corralation between Simt Real and Mainstay Common
Assuming the 90 days horizon Simt Real is expected to generate 1.04 times less return on investment than Mainstay Common. In addition to that, Simt Real is 1.39 times more volatile than Mainstay Mon Stock. It trades about 0.09 of its total potential returns per unit of risk. Mainstay Mon Stock is currently generating about 0.13 per unit of volatility. If you would invest 2,886 in Mainstay Mon Stock on September 4, 2024 and sell it today you would earn a total of 744.00 from holding Mainstay Mon Stock or generate 25.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Simt Real Estate vs. Mainstay Mon Stock
Performance |
Timeline |
Simt Real Estate |
Mainstay Mon Stock |
Simt Real and Mainstay Common Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Simt Real and Mainstay Common
The main advantage of trading using opposite Simt Real and Mainstay Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Real position performs unexpectedly, Mainstay Common 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 Common will offset losses from the drop in Mainstay Common's long position.Simt Real vs. Government Securities Fund | Simt Real vs. Us Government Securities | Simt Real vs. John Hancock Government | Simt Real vs. Blackrock Government Bond |
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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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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