Correlation Between Gmo Emerging and Mainstay Vertible
Can any of the company-specific risk be diversified away by investing in both Gmo Emerging and Mainstay Vertible 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 Gmo Emerging and Mainstay Vertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gmo Emerging Markets and Mainstay Vertible Fund, you can compare the effects of market volatilities on Gmo Emerging and Mainstay Vertible 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 Gmo Emerging with a short position of Mainstay Vertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo Emerging and Mainstay Vertible.
Diversification Opportunities for Gmo Emerging and Mainstay Vertible
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gmo and Mainstay is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Gmo Emerging Markets and Mainstay Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Vertible and Gmo 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 Gmo Emerging Markets are associated (or correlated) with Mainstay Vertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Vertible has no effect on the direction of Gmo Emerging i.e., Gmo Emerging and Mainstay Vertible go up and down completely randomly.
Pair Corralation between Gmo Emerging and Mainstay Vertible
Assuming the 90 days horizon Gmo Emerging Markets is expected to generate 1.44 times more return on investment than Mainstay Vertible. However, Gmo Emerging is 1.44 times more volatile than Mainstay Vertible Fund. It trades about 0.36 of its potential returns per unit of risk. Mainstay Vertible Fund is currently generating about 0.34 per unit of risk. If you would invest 2,333 in Gmo Emerging Markets on April 24, 2025 and sell it today you would earn a total of 371.00 from holding Gmo Emerging Markets or generate 15.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Gmo Emerging Markets vs. Mainstay Vertible Fund
Performance |
| Timeline |
| Gmo Emerging Markets |
| Mainstay Vertible |
Gmo Emerging and Mainstay Vertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo Emerging and Mainstay Vertible
The main advantage of trading using opposite Gmo Emerging and Mainstay Vertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo Emerging position performs unexpectedly, Mainstay Vertible 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 Vertible will offset losses from the drop in Mainstay Vertible's long position.| Gmo Emerging vs. T Rowe Price | Gmo Emerging vs. Jpmorgan Smartretirement 2035 | Gmo Emerging vs. Mutual Of America | Gmo Emerging vs. T Rowe Price |
| Mainstay Vertible vs. Mainstay Large Cap | Mainstay Vertible vs. Mainstay Large Cap | Mainstay Vertible vs. Mainstay Large Cap | Mainstay Vertible vs. Mainstay Winslow Large |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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