Correlation Between Ultra-short Term and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Ultra-short Term and Mainstay High 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 Ultra-short Term and Mainstay High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ultra Short Term Fixed and Mainstay High Yield, you can compare the effects of market volatilities on Ultra-short Term and Mainstay High 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 Ultra-short Term with a short position of Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultra-short Term and Mainstay High.
Diversification Opportunities for Ultra-short Term and Mainstay High
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ultra-short and Mainstay is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ultra Short Term Fixed and Mainstay High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay High Yield and Ultra-short Term 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 Ultra Short Term Fixed are associated (or correlated) with Mainstay High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay High Yield has no effect on the direction of Ultra-short Term i.e., Ultra-short Term and Mainstay High go up and down completely randomly.
Pair Corralation between Ultra-short Term and Mainstay High
Assuming the 90 days horizon Ultra Short Term Fixed is expected to generate 0.16 times more return on investment than Mainstay High. However, Ultra Short Term Fixed is 6.29 times less risky than Mainstay High. It trades about 0.45 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.06 per unit of risk. If you would invest 874.00 in Ultra Short Term Fixed on November 1, 2024 and sell it today you would earn a total of 105.00 from holding Ultra Short Term Fixed or generate 12.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ultra Short Term Fixed vs. Mainstay High Yield
Performance |
| Timeline |
| Ultra Short Term |
| Mainstay High Yield |
Ultra-short Term and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultra-short Term and Mainstay High
The main advantage of trading using opposite Ultra-short Term and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultra-short Term position performs unexpectedly, Mainstay High 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 High will offset losses from the drop in Mainstay High's long position.| Ultra-short Term vs. Artisan High Income | Ultra-short Term vs. Old Westbury Fixed | Ultra-short Term vs. Vanguard E Bond | Ultra-short Term vs. Inflation Adjusted Bond Fund |
| Mainstay High vs. Franklin Lifesmart Retirement | Mainstay High vs. Voya Retirement Moderate | Mainstay High vs. Transamerica Cleartrack Retirement | Mainstay High vs. Tiaa Cref Lifestyle Moderate |
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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