Correlation Between California Bond and Mainstay Fiera
Can any of the company-specific risk be diversified away by investing in both California Bond 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 California Bond and Mainstay Fiera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between California Bond Fund and Mainstay Fiera Smid, you can compare the effects of market volatilities on California Bond 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 California Bond with a short position of Mainstay Fiera. Check out your portfolio center. Please also check ongoing floating volatility patterns of California Bond and Mainstay Fiera.
Diversification Opportunities for California Bond and Mainstay Fiera
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between California and Mainstay is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding California Bond Fund 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 California Bond 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 California Bond Fund 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 California Bond i.e., California Bond and Mainstay Fiera go up and down completely randomly.
Pair Corralation between California Bond and Mainstay Fiera
Assuming the 90 days horizon California Bond Fund is expected to generate 0.39 times more return on investment than Mainstay Fiera. However, California Bond Fund is 2.59 times less risky than Mainstay Fiera. It trades about -0.03 of its potential returns per unit of risk. Mainstay Fiera Smid is currently generating about -0.08 per unit of risk. If you would invest 1,028 in California Bond Fund on January 18, 2025 and sell it today you would lose (33.00) from holding California Bond Fund or give up 3.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
California Bond Fund vs. Mainstay Fiera Smid
Performance |
| Timeline |
| California Bond |
| Mainstay Fiera Smid |
California Bond and Mainstay Fiera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with California Bond and Mainstay Fiera
The main advantage of trading using opposite California Bond and Mainstay Fiera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if California Bond 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.| California Bond vs. Siit Emerging Markets | California Bond vs. Virtus Emerging Markets | California Bond vs. Pace International Emerging | California Bond vs. Rbc Emerging Markets |
| Mainstay Fiera vs. The National Tax Free | Mainstay Fiera vs. Bbh Intermediate Municipal | Mainstay Fiera vs. Alpine Ultra Short | Mainstay Fiera vs. Access Capital Munity |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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