Correlation Between Investec Emerging and Mainstay Government
Can any of the company-specific risk be diversified away by investing in both Investec Emerging and Mainstay Government 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 Investec Emerging and Mainstay Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investec Emerging Markets and Mainstay Government Fund, you can compare the effects of market volatilities on Investec Emerging and Mainstay Government 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 Investec Emerging with a short position of Mainstay Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investec Emerging and Mainstay Government.
Diversification Opportunities for Investec Emerging and Mainstay Government
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Investec and Mainstay is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Investec Emerging Markets and Mainstay Government Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Government and Investec Emerging 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 Investec Emerging Markets are associated (or correlated) with Mainstay Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Government has no effect on the direction of Investec Emerging i.e., Investec Emerging and Mainstay Government go up and down completely randomly.
Pair Corralation between Investec Emerging and Mainstay Government
Assuming the 90 days horizon Investec Emerging Markets is expected to generate 2.35 times more return on investment than Mainstay Government. However, Investec Emerging is 2.35 times more volatile than Mainstay Government Fund. It trades about 0.05 of its potential returns per unit of risk. Mainstay Government Fund is currently generating about 0.05 per unit of risk. If you would invest 940.00 in Investec Emerging Markets on September 12, 2024 and sell it today you would earn a total of 132.00 from holding Investec Emerging Markets or generate 14.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investec Emerging Markets vs. Mainstay Government Fund
Performance |
| Timeline |
| Investec Emerging Markets |
| Mainstay Government |
Investec Emerging and Mainstay Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investec Emerging and Mainstay Government
The main advantage of trading using opposite Investec Emerging and Mainstay Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investec Emerging position performs unexpectedly, Mainstay Government 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 Government will offset losses from the drop in Mainstay Government's long position.| Investec Emerging vs. American Funds New | Investec Emerging vs. SCOR PK | Investec Emerging vs. Morningstar Unconstrained Allocation | Investec Emerging vs. Via Renewables |
| Mainstay Government vs. Transamerica Emerging Markets | Mainstay Government vs. Ashmore Emerging Markets | Mainstay Government vs. Investec Emerging Markets | Mainstay Government vs. Calvert Developed Market |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |