Correlation Between Mainstay Cushing and Vanguard Energy
Can any of the company-specific risk be diversified away by investing in both Mainstay Cushing and Vanguard Energy 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 Mainstay Cushing and Vanguard Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Cushing Energy and Vanguard Energy Fund, you can compare the effects of market volatilities on Mainstay Cushing and Vanguard Energy 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 Mainstay Cushing with a short position of Vanguard Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Cushing and Vanguard Energy.
Diversification Opportunities for Mainstay Cushing and Vanguard Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mainstay and Vanguard is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Cushing Energy and Vanguard Energy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Energy and Mainstay Cushing 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 Mainstay Cushing Energy are associated (or correlated) with Vanguard Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Energy has no effect on the direction of Mainstay Cushing i.e., Mainstay Cushing and Vanguard Energy go up and down completely randomly.
Pair Corralation between Mainstay Cushing and Vanguard Energy
If you would invest 6,970 in Vanguard Energy Fund on January 20, 2024 and sell it today you would earn a total of 2,072 from holding Vanguard Energy Fund or generate 29.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Mainstay Cushing Energy vs. Vanguard Energy Fund
Performance |
Timeline |
Mainstay Cushing Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Vanguard Energy |
Mainstay Cushing and Vanguard Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mainstay Cushing and Vanguard Energy
The main advantage of trading using opposite Mainstay Cushing and Vanguard Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Cushing position performs unexpectedly, Vanguard Energy 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 Vanguard Energy will offset losses from the drop in Vanguard Energy's long position.Mainstay Cushing vs. Lebenthal Lisanti Small | Mainstay Cushing vs. Pace Smallmedium Value | Mainstay Cushing vs. Qs Small Capitalization | Mainstay Cushing vs. Eagle Small Cap |
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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.
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