Correlation Between Touchstone Large and Mainstay Map
Can any of the company-specific risk be diversified away by investing in both Touchstone Large and Mainstay Map 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 Touchstone Large and Mainstay Map into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone Large Cap and Mainstay Map Equity, you can compare the effects of market volatilities on Touchstone Large and Mainstay Map 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 Touchstone Large with a short position of Mainstay Map. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Large and Mainstay Map.
Diversification Opportunities for Touchstone Large and Mainstay Map
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Touchstone and Mainstay is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Large Cap and Mainstay Map Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Map Equity and Touchstone 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 Touchstone Large Cap are associated (or correlated) with Mainstay Map. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Map Equity has no effect on the direction of Touchstone Large i.e., Touchstone Large and Mainstay Map go up and down completely randomly.
Pair Corralation between Touchstone Large and Mainstay Map
Assuming the 90 days horizon Touchstone Large Cap is expected to generate 0.94 times more return on investment than Mainstay Map. However, Touchstone Large Cap is 1.06 times less risky than Mainstay Map. It trades about 0.13 of its potential returns per unit of risk. Mainstay Map Equity is currently generating about 0.11 per unit of risk. If you would invest 1,680 in Touchstone Large Cap on September 4, 2024 and sell it today you would earn a total of 369.00 from holding Touchstone Large Cap or generate 21.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone Large Cap vs. Mainstay Map Equity
Performance |
| Timeline |
| Touchstone Large Cap |
| Mainstay Map Equity |
Touchstone Large and Mainstay Map Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Large and Mainstay Map
The main advantage of trading using opposite Touchstone Large and Mainstay Map positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Large position performs unexpectedly, Mainstay Map 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 Map will offset losses from the drop in Mainstay Map's long position.| Touchstone Large vs. Champlain Mid Cap | Touchstone Large vs. Pace Smallmedium Growth | Touchstone Large vs. Mid Cap Growth | Touchstone Large vs. T Rowe Price |
| Mainstay Map vs. Artisan Small Cap | Mainstay Map vs. Fisher Small Cap | Mainstay Map vs. Qs Small Capitalization | Mainstay Map vs. The Hartford Small |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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