Correlation Between Us Global and Mainstay California
Can any of the company-specific risk be diversified away by investing in both Us Global and Mainstay California 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 Us Global and Mainstay California into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Us Global Investors and Mainstay California Tax, you can compare the effects of market volatilities on Us Global and Mainstay California 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 Us Global with a short position of Mainstay California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Us Global and Mainstay California.
Diversification Opportunities for Us Global and Mainstay California
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between USLUX and Mainstay is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Us Global Investors and Mainstay California Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay California Tax and Us Global 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 Us Global Investors are associated (or correlated) with Mainstay California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay California Tax has no effect on the direction of Us Global i.e., Us Global and Mainstay California go up and down completely randomly.
Pair Corralation between Us Global and Mainstay California
Assuming the 90 days horizon Us Global Investors is expected to generate 4.02 times more return on investment than Mainstay California. However, Us Global is 4.02 times more volatile than Mainstay California Tax. It trades about 0.04 of its potential returns per unit of risk. Mainstay California Tax is currently generating about 0.09 per unit of risk. If you would invest 1,952 in Us Global Investors on September 2, 2024 and sell it today you would earn a total of 233.00 from holding Us Global Investors or generate 11.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Us Global Investors vs. Mainstay California Tax
Performance |
| Timeline |
| Us Global Investors |
| Mainstay California Tax |
Us Global and Mainstay California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Us Global and Mainstay California
The main advantage of trading using opposite Us Global and Mainstay California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Us Global position performs unexpectedly, Mainstay California 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 California will offset losses from the drop in Mainstay California's long position.| Us Global vs. International Paper | Us Global vs. O I Glass | Us Global vs. Smurfit WestRock plc | Us Global vs. Driven Brands Holdings |
| Mainstay California vs. Old Westbury Large | Mainstay California vs. T Rowe Price | Mainstay California vs. T Rowe Price | Mainstay California vs. Aqr 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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