Correlation Between Visa and Mainstay Moderate
Can any of the company-specific risk be diversified away by investing in both Visa and Mainstay Moderate 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 Visa and Mainstay Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and Mainstay Moderate Etf, you can compare the effects of market volatilities on Visa and Mainstay Moderate 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 Visa with a short position of Mainstay Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Mainstay Moderate.
Diversification Opportunities for Visa and Mainstay Moderate
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Visa and Mainstay is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Mainstay Moderate Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Moderate Etf and Visa 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 Visa Class A are associated (or correlated) with Mainstay Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Moderate Etf has no effect on the direction of Visa i.e., Visa and Mainstay Moderate go up and down completely randomly.
Pair Corralation between Visa and Mainstay Moderate
Taking into account the 90-day investment horizon Visa Class A is expected to generate 1.56 times more return on investment than Mainstay Moderate. However, Visa is 1.56 times more volatile than Mainstay Moderate Etf. It trades about 0.44 of its potential returns per unit of risk. Mainstay Moderate Etf is currently generating about 0.17 per unit of risk. If you would invest 31,440 in Visa Class A on November 3, 2024 and sell it today you would earn a total of 2,740 from holding Visa Class A or generate 8.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. Mainstay Moderate Etf
Performance |
| Timeline |
| Visa Class A |
| Mainstay Moderate Etf |
Visa and Mainstay Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Mainstay Moderate
The main advantage of trading using opposite Visa and Mainstay Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Mainstay Moderate 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 Moderate will offset losses from the drop in Mainstay Moderate's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Mainstay Moderate vs. Mainstay High Yield | Mainstay Moderate vs. Mainstay Tax Free | Mainstay Moderate vs. Mainstay Income Builder | Mainstay Moderate 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| CEOs Directory Screen CEOs from public companies around the world |