Correlation Between Western Assets and Mainstay Common
Can any of the company-specific risk be diversified away by investing in both Western Assets and Mainstay Common 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 Western Assets and Mainstay Common into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Assets Emerging and Mainstay Mon Stock, you can compare the effects of market volatilities on Western Assets and Mainstay Common 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 Western Assets with a short position of Mainstay Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Assets and Mainstay Common.
Diversification Opportunities for Western Assets and Mainstay Common
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Western and Mainstay is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Western Assets Emerging and Mainstay Mon Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mon Stock and Western Assets 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 Western Assets Emerging are associated (or correlated) with Mainstay Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Mon Stock has no effect on the direction of Western Assets i.e., Western Assets and Mainstay Common go up and down completely randomly.
Pair Corralation between Western Assets and Mainstay Common
Assuming the 90 days horizon Western Assets is expected to generate 27.36 times less return on investment than Mainstay Common. But when comparing it to its historical volatility, Western Assets Emerging is 2.61 times less risky than Mainstay Common. It trades about 0.02 of its potential returns per unit of risk. Mainstay Mon Stock is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 3,923 in Mainstay Mon Stock on August 26, 2024 and sell it today you would earn a total of 219.00 from holding Mainstay Mon Stock or generate 5.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Assets Emerging vs. Mainstay Mon Stock
Performance |
| Timeline |
| Western Assets Emerging |
| Mainstay Mon Stock |
Western Assets and Mainstay Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Assets and Mainstay Common
The main advantage of trading using opposite Western Assets and Mainstay Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Assets position performs unexpectedly, Mainstay Common 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 Common will offset losses from the drop in Mainstay Common's long position.| Western Assets vs. Vanguard Total Stock | Western Assets vs. Vanguard 500 Index | Western Assets vs. Vanguard Total Stock | Western Assets vs. Vanguard Total Stock |
| Mainstay Common vs. Rbc Bluebay Emerging | Mainstay Common vs. Western Assets Emerging | Mainstay Common vs. Black Oak Emerging | Mainstay Common vs. Eagle Mlp Strategy |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |