Correlation Between Fundamental Large and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Fundamental Large 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 Fundamental Large and Mainstay Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fundamental Large Cap and Mainstay Large Cap, you can compare the effects of market volatilities on Fundamental Large 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 Fundamental Large with a short position of Mainstay Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundamental Large and Mainstay Large.
Diversification Opportunities for Fundamental Large and Mainstay Large
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fundamental and Mainstay is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Fundamental Large Cap 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 Fundamental Large 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 Fundamental Large Cap 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 Fundamental Large i.e., Fundamental Large and Mainstay Large go up and down completely randomly.
Pair Corralation between Fundamental Large and Mainstay Large
Assuming the 90 days horizon Fundamental Large Cap is expected to generate 0.83 times more return on investment than Mainstay Large. However, Fundamental Large Cap is 1.2 times less risky than Mainstay Large. It trades about -0.21 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about -0.24 per unit of risk. If you would invest 6,948 in Fundamental Large Cap on December 1, 2024 and sell it today you would lose (249.00) from holding Fundamental Large Cap or give up 3.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fundamental Large Cap vs. Mainstay Large Cap
Performance |
| Timeline |
| Fundamental Large Cap |
| Mainstay Large Cap |
Fundamental Large and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fundamental Large and Mainstay Large
The main advantage of trading using opposite Fundamental Large and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundamental Large 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.| Fundamental Large vs. Alpine Ultra Short | Fundamental Large vs. Blackrock Global Longshort | Fundamental Large vs. Siit Ultra Short | Fundamental Large vs. Angel Oak Ultrashort |
| Mainstay Large vs. Pimco Energy Tactical | Mainstay Large vs. Invesco Energy Fund | Mainstay Large vs. Oil Gas Ultrasector | Mainstay Large vs. Fidelity Advisor Energy |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |