Correlation Between Wasatch Global and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Wasatch Global 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 Wasatch Global and Mainstay Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wasatch Global Opportunities and Mainstay Large Cap, you can compare the effects of market volatilities on Wasatch Global 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 Wasatch Global with a short position of Mainstay Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wasatch Global and Mainstay Large.
Diversification Opportunities for Wasatch Global and Mainstay Large
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wasatch and Mainstay is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Wasatch Global Opportunities 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 Wasatch Global 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 Wasatch Global Opportunities 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 Wasatch Global i.e., Wasatch Global and Mainstay Large go up and down completely randomly.
Pair Corralation between Wasatch Global and Mainstay Large
Assuming the 90 days horizon Wasatch Global is expected to generate 1.2 times less return on investment than Mainstay Large. But when comparing it to its historical volatility, Wasatch Global Opportunities is 1.28 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 0.07 of returns per unit of risk over similar time horizon. If you would invest 741.00 in Mainstay Large Cap on September 2, 2024 and sell it today you would earn a total of 256.00 from holding Mainstay Large Cap or generate 34.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wasatch Global Opportunities vs. Mainstay Large Cap
Performance |
| Timeline |
| Wasatch Global Oppor |
| Mainstay Large Cap |
Wasatch Global and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wasatch Global and Mainstay Large
The main advantage of trading using opposite Wasatch Global and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wasatch Global 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.| Wasatch Global vs. Wasatch Large Cap | Wasatch Global vs. Wasatch Micro Cap | Wasatch Global vs. Wasatch Ultra Growth | Wasatch Global vs. Wasatch Micro Cap |
| Mainstay Large vs. Morningstar Unconstrained Allocation | Mainstay Large vs. Principal Lifetime Hybrid | Mainstay Large vs. Alternative Asset Allocation | Mainstay Large vs. T Rowe Price |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |