Correlation Between Transamerica Emerging and Mainstay Income
Can any of the company-specific risk be diversified away by investing in both Transamerica Emerging and Mainstay Income 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 Transamerica Emerging and Mainstay Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transamerica Emerging Markets and Mainstay Income Builder, you can compare the effects of market volatilities on Transamerica Emerging and Mainstay Income 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 Transamerica Emerging with a short position of Mainstay Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transamerica Emerging and Mainstay Income.
Diversification Opportunities for Transamerica Emerging and Mainstay Income
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Transamerica and Mainstay is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Transamerica Emerging Markets and Mainstay Income Builder in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Income Builder and Transamerica 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 Transamerica Emerging Markets are associated (or correlated) with Mainstay Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Income Builder has no effect on the direction of Transamerica Emerging i.e., Transamerica Emerging and Mainstay Income go up and down completely randomly.
Pair Corralation between Transamerica Emerging and Mainstay Income
Assuming the 90 days horizon Transamerica Emerging Markets is expected to under-perform the Mainstay Income. In addition to that, Transamerica Emerging is 1.59 times more volatile than Mainstay Income Builder. It trades about -0.17 of its total potential returns per unit of risk. Mainstay Income Builder is currently generating about 0.28 per unit of volatility. If you would invest 2,077 in Mainstay Income Builder on September 3, 2024 and sell it today you would earn a total of 54.00 from holding Mainstay Income Builder or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transamerica Emerging Markets vs. Mainstay Income Builder
Performance |
| Timeline |
| Transamerica Emerging |
| Mainstay Income Builder |
Transamerica Emerging and Mainstay Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transamerica Emerging and Mainstay Income
The main advantage of trading using opposite Transamerica Emerging and Mainstay Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transamerica Emerging position performs unexpectedly, Mainstay Income 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 Income will offset losses from the drop in Mainstay Income's long position.| Transamerica Emerging vs. Guggenheim High Yield | Transamerica Emerging vs. Lord Abbett High | Transamerica Emerging vs. Msift High Yield | Transamerica Emerging vs. Ppm High Yield |
| Mainstay Income vs. Mainstay Sp 500 | Mainstay Income vs. Mainstay Balanced Fund | Mainstay Income vs. Mainstay Balanced Fund |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| 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 | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |