Correlation Between Visa and Mainstay Growth
Can any of the company-specific risk be diversified away by investing in both Visa and Mainstay Growth 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 Growth 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 Growth Etf, you can compare the effects of market volatilities on Visa and Mainstay Growth 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 Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Mainstay Growth.
Diversification Opportunities for Visa and Mainstay Growth
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and Mainstay is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Mainstay Growth Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Growth 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 Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Growth Etf has no effect on the direction of Visa i.e., Visa and Mainstay Growth go up and down completely randomly.
Pair Corralation between Visa and Mainstay Growth
Taking into account the 90-day investment horizon Visa is expected to generate 1.01 times less return on investment than Mainstay Growth. In addition to that, Visa is 1.6 times more volatile than Mainstay Growth Etf. It trades about 0.07 of its total potential returns per unit of risk. Mainstay Growth Etf is currently generating about 0.11 per unit of volatility. If you would invest 1,287 in Mainstay Growth Etf on August 28, 2024 and sell it today you would earn a total of 213.00 from holding Mainstay Growth Etf or generate 16.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.52% |
| Values | Daily Returns |
Visa Class A vs. Mainstay Growth Etf
Performance |
| Timeline |
| Visa Class A |
| Mainstay Growth Etf |
Visa and Mainstay Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Mainstay Growth
The main advantage of trading using opposite Visa and Mainstay Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Mainstay Growth 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 Growth will offset losses from the drop in Mainstay Growth's long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| Mainstay Growth vs. Siit Emerging Markets | Mainstay Growth vs. Rbc Bluebay Emerging | Mainstay Growth vs. Franklin Emerging Market | Mainstay Growth vs. Shelton Emerging Markets |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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