Correlation Between Wells Fargo and Mainstay Cushing

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Wells Fargo and Mainstay Cushing 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 Wells Fargo and Mainstay Cushing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wells Fargo Funds and Mainstay Cushing Energy, you can compare the effects of market volatilities on Wells Fargo and Mainstay Cushing 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 Wells Fargo with a short position of Mainstay Cushing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wells Fargo and Mainstay Cushing.

Diversification Opportunities for Wells Fargo and Mainstay Cushing

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Wells and Mainstay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wells Fargo Funds and Mainstay Cushing Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Cushing Energy and Wells Fargo 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 Wells Fargo Funds are associated (or correlated) with Mainstay Cushing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Cushing Energy has no effect on the direction of Wells Fargo i.e., Wells Fargo and Mainstay Cushing go up and down completely randomly.

Pair Corralation between Wells Fargo and Mainstay Cushing

If you would invest (100.00) in Mainstay Cushing Energy on September 12, 2024 and sell it today you would earn a total of  100.00  from holding Mainstay Cushing Energy or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Wells Fargo Funds  vs.  Mainstay Cushing Energy

 Performance 
       Timeline  
Wells Fargo Funds 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Wells Fargo Funds are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Wells Fargo is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Mainstay Cushing Energy 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Mainstay Cushing Energy has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Mainstay Cushing is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Wells Fargo and Mainstay Cushing Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Wells Fargo and Mainstay Cushing

The main advantage of trading using opposite Wells Fargo and Mainstay Cushing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wells Fargo position performs unexpectedly, Mainstay Cushing 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 Cushing will offset losses from the drop in Mainstay Cushing's long position.
The idea behind Wells Fargo Funds and Mainstay Cushing Energy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

Other Complementary Tools

Share Portfolio
Track or share privately all of your investments from the convenience of any device
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges