Correlation Between William Blair and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both William Blair and Mainstay Large 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 William Blair and Mainstay Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between William Blair Small and Mainstay Large Cap, you can compare the effects of market volatilities on William Blair and Mainstay Large 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 William Blair with a short position of Mainstay Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of William Blair and Mainstay Large.
Diversification Opportunities for William Blair and Mainstay Large
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between William and Mainstay is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding William Blair Small and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap and William Blair 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 William Blair Small are associated (or correlated) with Mainstay Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of William Blair i.e., William Blair and Mainstay Large go up and down completely randomly.
Pair Corralation between William Blair and Mainstay Large
Assuming the 90 days horizon William Blair Small is expected to generate 0.65 times more return on investment than Mainstay Large. However, William Blair Small is 1.55 times less risky than Mainstay Large. It trades about 0.07 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about -0.03 per unit of risk. If you would invest 2,882 in William Blair Small on September 14, 2024 and sell it today you would earn a total of 343.00 from holding William Blair Small or generate 11.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
William Blair Small vs. Mainstay Large Cap
Performance |
| Timeline |
| William Blair Small |
| Mainstay Large Cap |
William Blair and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with William Blair and Mainstay Large
The main advantage of trading using opposite William Blair and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if William Blair position performs unexpectedly, Mainstay Large 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 Large will offset losses from the drop in Mainstay Large's long position.| William Blair vs. Allianzgi Convertible Income | William Blair vs. Putnam Convertible Incm Gwth | William Blair vs. Rationalpier 88 Convertible | William Blair vs. Calamos Dynamic Convertible |
| Mainstay Large vs. Legg Mason Global | Mainstay Large vs. Kinetics Global Fund | Mainstay Large vs. Scharf Global Opportunity | Mainstay Large vs. Franklin Mutual Global |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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