Correlation Between Allianzgi Convertible and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and Mainstay Large 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 Large 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 Large Cap, you can compare the effects of market volatilities on Allianzgi Convertible and Mainstay Large 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 Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Mainstay Large.
Diversification Opportunities for Allianzgi Convertible and Mainstay Large
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allianzgi and Mainstay is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap 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 Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Mainstay Large go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and Mainstay Large
Assuming the 90 days horizon Allianzgi Convertible Income is expected to under-perform the Mainstay Large. But the mutual fund apears to be less risky and, when comparing its historical volatility, Allianzgi Convertible Income is 1.42 times less risky than Mainstay Large. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Mainstay Large Cap is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 549.00 in Mainstay Large Cap on March 5, 2024 and sell it today you would earn a total of 7.00 from holding Mainstay Large Cap or generate 1.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Allianzgi Convertible Income vs. Mainstay Large Cap
Performance |
Timeline |
Allianzgi Convertible |
Mainstay Large Cap |
Allianzgi Convertible and Mainstay Large Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Allianzgi Convertible and Mainstay Large
The main advantage of trading using opposite Allianzgi Convertible and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible position performs unexpectedly, Mainstay Large 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 Large will offset losses from the drop in Mainstay Large's long position.Allianzgi Convertible vs. Vanguard Total Stock | Allianzgi Convertible vs. Vanguard 500 Index | Allianzgi Convertible vs. Vanguard Total Stock | Allianzgi Convertible vs. Vanguard Total Stock |
Mainstay Large vs. Mainstay High Yield | Mainstay Large vs. Mainstay Tax Free | Mainstay Large vs. Mainstay Income Builder | Mainstay Large 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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