Correlation Between The Tocqueville and Mainstay Fiera
Can any of the company-specific risk be diversified away by investing in both The Tocqueville 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 The Tocqueville and Mainstay Fiera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Tocqueville Gold and Mainstay Fiera Smid, you can compare the effects of market volatilities on The Tocqueville 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 The Tocqueville with a short position of Mainstay Fiera. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Tocqueville and Mainstay Fiera.
Diversification Opportunities for The Tocqueville and Mainstay Fiera
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between THE and Mainstay is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding The Tocqueville Gold 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 The Tocqueville 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 The Tocqueville Gold 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 The Tocqueville i.e., The Tocqueville and Mainstay Fiera go up and down completely randomly.
Pair Corralation between The Tocqueville and Mainstay Fiera
If you would invest 1,733 in Mainstay Fiera Smid on August 28, 2024 and sell it today you would earn a total of 175.00 from holding Mainstay Fiera Smid or generate 10.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
The Tocqueville Gold vs. Mainstay Fiera Smid
Performance |
| Timeline |
| Tocqueville Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mainstay Fiera Smid |
The Tocqueville and Mainstay Fiera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Tocqueville and Mainstay Fiera
The main advantage of trading using opposite The Tocqueville and Mainstay Fiera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Tocqueville 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.| The Tocqueville vs. Europac Gold Fund | The Tocqueville vs. Short Precious Metals | The Tocqueville vs. James Balanced Golden | The Tocqueville vs. Invesco Gold Special |
| Mainstay Fiera vs. Mainstay High Yield | Mainstay Fiera vs. Mainstay Tax Free | Mainstay Fiera vs. Mainstay Income Builder | Mainstay Fiera vs. Mainstay Large 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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