Correlation Between Growth Opportunities and Mainstay Winslow
Can any of the company-specific risk be diversified away by investing in both Growth Opportunities and Mainstay Winslow 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 Growth Opportunities and Mainstay Winslow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Opportunities Fund and Mainstay Winslow Large, you can compare the effects of market volatilities on Growth Opportunities and Mainstay Winslow 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 Growth Opportunities with a short position of Mainstay Winslow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Opportunities and Mainstay Winslow.
Diversification Opportunities for Growth Opportunities and Mainstay Winslow
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between GROWTH and Mainstay is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Growth Opportunities Fund and Mainstay Winslow Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Winslow Large and Growth Opportunities 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 Growth Opportunities Fund are associated (or correlated) with Mainstay Winslow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Winslow Large has no effect on the direction of Growth Opportunities i.e., Growth Opportunities and Mainstay Winslow go up and down completely randomly.
Pair Corralation between Growth Opportunities and Mainstay Winslow
Assuming the 90 days horizon Growth Opportunities Fund is expected to generate 0.92 times more return on investment than Mainstay Winslow. However, Growth Opportunities Fund is 1.08 times less risky than Mainstay Winslow. It trades about 0.11 of its potential returns per unit of risk. Mainstay Winslow Large is currently generating about 0.1 per unit of risk. If you would invest 5,064 in Growth Opportunities Fund on September 2, 2024 and sell it today you would earn a total of 792.00 from holding Growth Opportunities Fund or generate 15.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Opportunities Fund vs. Mainstay Winslow Large
Performance |
| Timeline |
| Growth Opportunities |
| Mainstay Winslow Large |
Growth Opportunities and Mainstay Winslow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Opportunities and Mainstay Winslow
The main advantage of trading using opposite Growth Opportunities and Mainstay Winslow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Opportunities position performs unexpectedly, Mainstay Winslow 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 Winslow will offset losses from the drop in Mainstay Winslow's long position.| Growth Opportunities vs. Mid Cap Value Profund | Growth Opportunities vs. Mutual Of America | Growth Opportunities vs. American Century Etf | Growth Opportunities vs. Heartland Value Plus |
| Mainstay Winslow vs. Mainstay High Yield | Mainstay Winslow vs. Mainstay Tax Free | Mainstay Winslow vs. Mainstay Income Builder | Mainstay Winslow 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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