Correlation Between Western Assets and Mainstay Growth
Can any of the company-specific risk be diversified away by investing in both Western Assets and Mainstay Growth 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 Growth 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 Growth Etf, you can compare the effects of market volatilities on Western Assets and Mainstay Growth 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 Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Assets and Mainstay Growth.
Diversification Opportunities for Western Assets and Mainstay Growth
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Western and Mainstay is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Western Assets Emerging and Mainstay Growth Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Growth Etf 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 Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Growth Etf has no effect on the direction of Western Assets i.e., Western Assets and Mainstay Growth go up and down completely randomly.
Pair Corralation between Western Assets and Mainstay Growth
Assuming the 90 days horizon Western Assets is expected to generate 10.05 times less return on investment than Mainstay Growth. But when comparing it to its historical volatility, Western Assets Emerging is 1.78 times less risky than Mainstay Growth. It trades about 0.03 of its potential returns per unit of risk. Mainstay Growth Etf is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,451 in Mainstay Growth Etf on August 27, 2024 and sell it today you would earn a total of 29.00 from holding Mainstay Growth Etf or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Assets Emerging vs. Mainstay Growth Etf
Performance |
| Timeline |
| Western Assets Emerging |
| Mainstay Growth Etf |
Western Assets and Mainstay Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Assets and Mainstay Growth
The main advantage of trading using opposite Western Assets and Mainstay Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Assets position performs unexpectedly, Mainstay Growth 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 Growth will offset losses from the drop in Mainstay Growth's long position.| Western Assets vs. Moderately Aggressive Balanced | Western Assets vs. Wisdomtree Siegel Moderate | Western Assets vs. Pgim Conservative Retirement | Western Assets vs. Lifestyle Ii Moderate |
| Mainstay Growth vs. Artisan Emerging Markets | Mainstay Growth vs. Western Assets Emerging | Mainstay Growth vs. Rbc Bluebay Emerging | Mainstay Growth vs. Ashmore Emerging Markets |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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