Correlation Between Siit Emerging and Mainstay Moderate
Can any of the company-specific risk be diversified away by investing in both Siit Emerging and Mainstay Moderate 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 Siit Emerging and Mainstay Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Emerging Markets and Mainstay Moderate Growth, you can compare the effects of market volatilities on Siit Emerging and Mainstay Moderate 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 Siit Emerging with a short position of Mainstay Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Emerging and Mainstay Moderate.
Diversification Opportunities for Siit Emerging and Mainstay Moderate
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siit and Mainstay is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Siit Emerging Markets and Mainstay Moderate Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Moderate Growth and Siit Emerging 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 Siit Emerging Markets are associated (or correlated) with Mainstay Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Moderate Growth has no effect on the direction of Siit Emerging i.e., Siit Emerging and Mainstay Moderate go up and down completely randomly.
Pair Corralation between Siit Emerging and Mainstay Moderate
Assuming the 90 days horizon Siit Emerging Markets is expected to under-perform the Mainstay Moderate. In addition to that, Siit Emerging is 1.03 times more volatile than Mainstay Moderate Growth. It trades about -0.17 of its total potential returns per unit of risk. Mainstay Moderate Growth is currently generating about 0.21 per unit of volatility. If you would invest 1,642 in Mainstay Moderate Growth on August 26, 2024 and sell it today you would earn a total of 49.00 from holding Mainstay Moderate Growth or generate 2.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Emerging Markets vs. Mainstay Moderate Growth
Performance |
| Timeline |
| Siit Emerging Markets |
| Mainstay Moderate Growth |
Siit Emerging and Mainstay Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Emerging and Mainstay Moderate
The main advantage of trading using opposite Siit Emerging and Mainstay Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Emerging position performs unexpectedly, Mainstay Moderate 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 Moderate will offset losses from the drop in Mainstay Moderate's long position.| Siit Emerging vs. Conservative Balanced Allocation | Siit Emerging vs. Prudential Core Conservative | Siit Emerging vs. Fidelity Advisor Diversified | Siit Emerging vs. Adams Diversified Equity |
| Mainstay Moderate vs. Artisan Emerging Markets | Mainstay Moderate vs. Ep Emerging Markets | Mainstay Moderate vs. Siit Emerging Markets | Mainstay Moderate vs. Extended Market Index |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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