Correlation Between Vanguard New and Mainstay New
Can any of the company-specific risk be diversified away by investing in both Vanguard New and Mainstay New 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 Vanguard New and Mainstay New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard New York and Mainstay New York, you can compare the effects of market volatilities on Vanguard New and Mainstay New 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 Vanguard New with a short position of Mainstay New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard New and Mainstay New.
Diversification Opportunities for Vanguard New and Mainstay New
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vanguard and Mainstay is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard New York and Mainstay New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay New York and Vanguard New 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 Vanguard New York are associated (or correlated) with Mainstay New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay New York has no effect on the direction of Vanguard New i.e., Vanguard New and Mainstay New go up and down completely randomly.
Pair Corralation between Vanguard New and Mainstay New
Assuming the 90 days horizon Vanguard New York is expected to generate 1.05 times more return on investment than Mainstay New. However, Vanguard New is 1.05 times more volatile than Mainstay New York. It trades about 0.08 of its potential returns per unit of risk. Mainstay New York is currently generating about 0.08 per unit of risk. If you would invest 1,019 in Vanguard New York on September 2, 2024 and sell it today you would earn a total of 86.00 from holding Vanguard New York or generate 8.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard New York vs. Mainstay New York
Performance |
| Timeline |
| Vanguard New York |
| Mainstay New York |
Vanguard New and Mainstay New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard New and Mainstay New
The main advantage of trading using opposite Vanguard New and Mainstay New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard New position performs unexpectedly, Mainstay New 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 New will offset losses from the drop in Mainstay New's long position.| Vanguard New vs. Vanguard New Jersey | Vanguard New vs. Vanguard Long Term Tax Exempt | Vanguard New vs. Vanguard Massachusetts Tax Exempt | Vanguard New vs. Vanguard Ohio Long Term |
| Mainstay New vs. Huber Capital Equity | Mainstay New vs. Small Cap Equity | Mainstay New vs. Ultra Short Fixed Income | Mainstay New vs. Cutler Equity |
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.
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