Correlation Between Tfa Alphagen and Mainstay Fiera
Can any of the company-specific risk be diversified away by investing in both Tfa Alphagen and Mainstay Fiera 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 Tfa Alphagen and Mainstay Fiera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tfa Alphagen Growth and Mainstay Fiera Smid, you can compare the effects of market volatilities on Tfa Alphagen and Mainstay Fiera 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 Tfa Alphagen with a short position of Mainstay Fiera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tfa Alphagen and Mainstay Fiera.
Diversification Opportunities for Tfa Alphagen and Mainstay Fiera
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tfa and Mainstay is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Tfa Alphagen Growth and Mainstay Fiera Smid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Fiera Smid and Tfa Alphagen 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 Tfa Alphagen Growth are associated (or correlated) with Mainstay Fiera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Fiera Smid has no effect on the direction of Tfa Alphagen i.e., Tfa Alphagen and Mainstay Fiera go up and down completely randomly.
Pair Corralation between Tfa Alphagen and Mainstay Fiera
Assuming the 90 days horizon Tfa Alphagen Growth is expected to generate 0.44 times more return on investment than Mainstay Fiera. However, Tfa Alphagen Growth is 2.27 times less risky than Mainstay Fiera. It trades about 0.06 of its potential returns per unit of risk. Mainstay Fiera Smid is currently generating about -0.04 per unit of risk. If you would invest 1,124 in Tfa Alphagen Growth on September 12, 2024 and sell it today you would earn a total of 8.00 from holding Tfa Alphagen Growth or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tfa Alphagen Growth vs. Mainstay Fiera Smid
Performance |
| Timeline |
| Tfa Alphagen Growth |
| Mainstay Fiera Smid |
Tfa Alphagen and Mainstay Fiera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tfa Alphagen and Mainstay Fiera
The main advantage of trading using opposite Tfa Alphagen and Mainstay Fiera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tfa Alphagen position performs unexpectedly, Mainstay Fiera 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 Fiera will offset losses from the drop in Mainstay Fiera's long position.| Tfa Alphagen vs. Small Pany Growth | Tfa Alphagen vs. Crafword Dividend Growth | Tfa Alphagen vs. Mid Cap Growth | Tfa Alphagen vs. L Abbett Growth |
| Mainstay Fiera vs. Origin Emerging Markets | Mainstay Fiera vs. Siit Emerging Markets | Mainstay Fiera vs. Black Oak Emerging | Mainstay Fiera vs. Doubleline Emerging Markets |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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