Correlation Between Chartwell Small and Mainstay Convertible
Can any of the company-specific risk be diversified away by investing in both Chartwell Small 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 Chartwell Small and Mainstay Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chartwell Small Cap and Mainstay Vertible Fund, you can compare the effects of market volatilities on Chartwell Small 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 Chartwell Small with a short position of Mainstay Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chartwell Small and Mainstay Convertible.
Diversification Opportunities for Chartwell Small and Mainstay Convertible
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chartwell and Mainstay is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Chartwell Small Cap and Mainstay Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Convertible and Chartwell Small 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 Chartwell Small Cap 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 Chartwell Small i.e., Chartwell Small and Mainstay Convertible go up and down completely randomly.
Pair Corralation between Chartwell Small and Mainstay Convertible
Assuming the 90 days horizon Chartwell Small Cap is expected to generate 2.6 times more return on investment than Mainstay Convertible. However, Chartwell Small is 2.6 times more volatile than Mainstay Vertible Fund. It trades about 0.21 of its potential returns per unit of risk. Mainstay Vertible Fund is currently generating about 0.35 per unit of risk. If you would invest 1,221 in Chartwell Small Cap on April 14, 2025 and sell it today you would earn a total of 220.00 from holding Chartwell Small Cap or generate 18.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chartwell Small Cap vs. Mainstay Vertible Fund
Performance |
| Timeline |
| Chartwell Small Cap |
| Mainstay Convertible |
Chartwell Small and Mainstay Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chartwell Small and Mainstay Convertible
The main advantage of trading using opposite Chartwell Small and Mainstay Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chartwell Small 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.| Chartwell Small vs. T Rowe Price | Chartwell Small vs. Transamerica Asset Allocation | Chartwell Small vs. Nuveen Large Cap | Chartwell Small vs. Pace Large Growth |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |