Correlation Between Allianzgi Convertible and Mainstay Convertible
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and Mainstay Convertible 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 Allianzgi Convertible and Mainstay Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Convertible Income and Mainstay Vertible Fund, you can compare the effects of market volatilities on Allianzgi Convertible and Mainstay Convertible 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 Allianzgi Convertible with a short position of Mainstay Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Mainstay Convertible.
Diversification Opportunities for Allianzgi Convertible and Mainstay Convertible
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allianzgi and Mainstay is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Mainstay Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Convertible and Allianzgi Convertible 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 Allianzgi Convertible Income are associated (or correlated) with Mainstay Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Convertible has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Mainstay Convertible go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and Mainstay Convertible
Assuming the 90 days horizon Allianzgi Convertible Income is expected to under-perform the Mainstay Convertible. In addition to that, Allianzgi Convertible is 1.49 times more volatile than Mainstay Vertible Fund. It trades about -0.22 of its total potential returns per unit of risk. Mainstay Vertible Fund is currently generating about -0.32 per unit of volatility. If you would invest 1,956 in Mainstay Vertible Fund on October 12, 2024 and sell it today you would lose (80.00) from holding Mainstay Vertible Fund or give up 4.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Convertible Income vs. Mainstay Vertible Fund
Performance |
| Timeline |
| Allianzgi Convertible |
| Mainstay Convertible |
Allianzgi Convertible and Mainstay Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Convertible and Mainstay Convertible
The main advantage of trading using opposite Allianzgi Convertible and Mainstay Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible position performs unexpectedly, Mainstay Convertible 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 Convertible will offset losses from the drop in Mainstay Convertible's long position.The idea behind Allianzgi Convertible Income and Mainstay Vertible Fund 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.
| Mainstay Convertible vs. Mainstay High Yield | Mainstay Convertible vs. Mainstay Income Builder | Mainstay Convertible vs. Mainstay Sp 500 | Mainstay Convertible 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Transaction History View history of all your transactions and understand their impact on performance |