Correlation Between Mid Cap and Mainstay Mon
Can any of the company-specific risk be diversified away by investing in both Mid Cap and Mainstay Mon 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 Mid Cap and Mainstay Mon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Cap Growth and Mainstay Mon Stock, you can compare the effects of market volatilities on Mid Cap and Mainstay Mon 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 Mid Cap with a short position of Mainstay Mon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid Cap and Mainstay Mon.
Diversification Opportunities for Mid Cap and Mainstay Mon
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mid and Mainstay is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Growth 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 Mid Cap 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 Mid Cap Growth are associated (or correlated) with Mainstay Mon. 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 Mid Cap i.e., Mid Cap and Mainstay Mon go up and down completely randomly.
Pair Corralation between Mid Cap and Mainstay Mon
Assuming the 90 days horizon Mid Cap Growth is expected to generate 1.26 times more return on investment than Mainstay Mon. However, Mid Cap is 1.26 times more volatile than Mainstay Mon Stock. It trades about 0.08 of its potential returns per unit of risk. Mainstay Mon Stock is currently generating about 0.08 per unit of risk. If you would invest 2,677 in Mid Cap Growth on September 14, 2024 and sell it today you would earn a total of 1,339 from holding Mid Cap Growth or generate 50.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mid Cap Growth vs. Mainstay Mon Stock
Performance |
| Timeline |
| Mid Cap Growth |
| Mainstay Mon Stock |
Mid Cap and Mainstay Mon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid Cap and Mainstay Mon
The main advantage of trading using opposite Mid Cap and Mainstay Mon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid Cap position performs unexpectedly, Mainstay Mon 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 Mon will offset losses from the drop in Mainstay Mon's long position.| Mid Cap vs. Touchstone Mid Cap | Mid Cap vs. Federated Mdt Small | Mid Cap vs. Harding Loevner International | Mid Cap vs. Sterling Capital Equity |
| Mainstay Mon vs. T Rowe Price | Mainstay Mon vs. Mid Cap Growth | Mainstay Mon vs. L Abbett Growth | Mainstay Mon vs. Champlain Mid 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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