Correlation Between Wasatch Global and Mainstay Winslow
Can any of the company-specific risk be diversified away by investing in both Wasatch Global and Mainstay Winslow 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 Winslow 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 Winslow Large, you can compare the effects of market volatilities on Wasatch Global and Mainstay Winslow 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 Winslow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wasatch Global and Mainstay Winslow.
Diversification Opportunities for Wasatch Global and Mainstay Winslow
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wasatch and Mainstay is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Wasatch Global Opportunities and Mainstay Winslow Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Winslow Large 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 Winslow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Winslow Large has no effect on the direction of Wasatch Global i.e., Wasatch Global and Mainstay Winslow go up and down completely randomly.
Pair Corralation between Wasatch Global and Mainstay Winslow
Assuming the 90 days horizon Wasatch Global Opportunities is expected to generate 0.77 times more return on investment than Mainstay Winslow. However, Wasatch Global Opportunities is 1.3 times less risky than Mainstay Winslow. It trades about 0.12 of its potential returns per unit of risk. Mainstay Winslow Large is currently generating about 0.08 per unit of risk. If you would invest 365.00 in Wasatch Global Opportunities on September 1, 2024 and sell it today you would earn a total of 138.00 from holding Wasatch Global Opportunities or generate 37.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wasatch Global Opportunities vs. Mainstay Winslow Large
Performance |
| Timeline |
| Wasatch Global Oppor |
| Mainstay Winslow Large |
Wasatch Global and Mainstay Winslow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wasatch Global and Mainstay Winslow
The main advantage of trading using opposite Wasatch Global and Mainstay Winslow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wasatch Global position performs unexpectedly, Mainstay Winslow 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 Winslow will offset losses from the drop in Mainstay Winslow'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 Winslow vs. Mainstay High Yield | Mainstay Winslow vs. Mainstay Tax Free | Mainstay Winslow vs. Mainstay Income Builder | Mainstay Winslow vs. Mainstay Large Cap |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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