Correlation Between Virtus Convertible and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Virtus Convertible and Mainstay Mackay 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 Virtus Convertible and Mainstay Mackay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Convertible and Mainstay Mackay Strategic, you can compare the effects of market volatilities on Virtus Convertible and Mainstay Mackay 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 Virtus Convertible with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Convertible and Mainstay Mackay.
Diversification Opportunities for Virtus Convertible and Mainstay Mackay
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Virtus and Mainstay is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Convertible and Mainstay Mackay Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mackay Strategic and Virtus Convertible 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 Virtus Convertible are associated (or correlated) with Mainstay Mackay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Mackay Strategic has no effect on the direction of Virtus Convertible i.e., Virtus Convertible and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Virtus Convertible and Mainstay Mackay
Assuming the 90 days horizon Virtus Convertible is expected to generate 6.98 times more return on investment than Mainstay Mackay. However, Virtus Convertible is 6.98 times more volatile than Mainstay Mackay Strategic. It trades about 0.2 of its potential returns per unit of risk. Mainstay Mackay Strategic is currently generating about 0.44 per unit of risk. If you would invest 3,610 in Virtus Convertible on September 12, 2024 and sell it today you would earn a total of 100.00 from holding Virtus Convertible or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Virtus Convertible vs. Mainstay Mackay Strategic
Performance |
| Timeline |
| Virtus Convertible |
| Mainstay Mackay Strategic |
Virtus Convertible and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Convertible and Mainstay Mackay
The main advantage of trading using opposite Virtus Convertible and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Convertible position performs unexpectedly, Mainstay Mackay 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 Mackay will offset losses from the drop in Mainstay Mackay's long position.| Virtus Convertible vs. Acm Dynamic Opportunity | Virtus Convertible vs. Leggmason Partners Institutional | Virtus Convertible vs. Arrow Managed Futures | Virtus Convertible vs. Volumetric Fund Volumetric |
| Mainstay Mackay vs. Virtus Convertible | Mainstay Mackay vs. Fidelity Sai Convertible | Mainstay Mackay vs. Absolute Convertible Arbitrage | Mainstay Mackay vs. Rationalpier 88 Convertible |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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