Correlation Between Rbc Funds and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Rbc Funds and Mainstay Large 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 Rbc Funds and Mainstay Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rbc Funds Trust and Mainstay Large Cap, you can compare the effects of market volatilities on Rbc Funds and Mainstay Large 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 Rbc Funds with a short position of Mainstay Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rbc Funds and Mainstay Large.
Diversification Opportunities for Rbc Funds and Mainstay Large
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Rbc and Mainstay is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Rbc Funds Trust and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap and Rbc Funds 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 Rbc Funds Trust are associated (or correlated) with Mainstay Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of Rbc Funds i.e., Rbc Funds and Mainstay Large go up and down completely randomly.
Pair Corralation between Rbc Funds and Mainstay Large
Assuming the 90 days horizon Rbc Funds is expected to generate 4.34 times less return on investment than Mainstay Large. But when comparing it to its historical volatility, Rbc Funds Trust is 1.37 times less risky than Mainstay Large. It trades about 0.03 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 629.00 in Mainstay Large Cap on August 30, 2024 and sell it today you would earn a total of 360.00 from holding Mainstay Large Cap or generate 57.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Rbc Funds Trust vs. Mainstay Large Cap
Performance |
| Timeline |
| Rbc Funds Trust |
| Mainstay Large Cap |
Rbc Funds and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rbc Funds and Mainstay Large
The main advantage of trading using opposite Rbc Funds and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rbc Funds position performs unexpectedly, Mainstay Large 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 Large will offset losses from the drop in Mainstay Large's long position.| Rbc Funds vs. Abr 7525 Volatility | Rbc Funds vs. Rbb Fund | Rbc Funds vs. Rbc Microcap Value | Rbc Funds vs. Balanced Fund Investor |
| Mainstay Large vs. Tax Managed Mid Small | Mainstay Large vs. Chartwell Small Cap | Mainstay Large vs. Touchstone Small Cap | Mainstay Large vs. Ancorathelen Small Mid 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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