Correlation Between Mainstay and Virtus Convertible
Can any of the company-specific risk be diversified away by investing in both Mainstay and Virtus 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 Mainstay and Virtus Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Sp 500 and Virtus Convertible, you can compare the effects of market volatilities on Mainstay and Virtus 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 Mainstay with a short position of Virtus Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay and Virtus Convertible.
Diversification Opportunities for Mainstay and Virtus Convertible
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Virtus is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Sp 500 and Virtus Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Convertible and Mainstay 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 Sp 500 are associated (or correlated) with Virtus Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Convertible has no effect on the direction of Mainstay i.e., Mainstay and Virtus Convertible go up and down completely randomly.
Pair Corralation between Mainstay and Virtus Convertible
Assuming the 90 days horizon Mainstay is expected to generate 1.15 times less return on investment than Virtus Convertible. In addition to that, Mainstay is 1.1 times more volatile than Virtus Convertible. It trades about 0.22 of its total potential returns per unit of risk. Virtus Convertible is currently generating about 0.27 per unit of volatility. If you would invest 3,591 in Virtus Convertible on June 5, 2025 and sell it today you would earn a total of 345.00 from holding Virtus Convertible or generate 9.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Sp 500 vs. Virtus Convertible
Performance |
| Timeline |
| Mainstay Sp 500 |
| Virtus Convertible |
Mainstay and Virtus Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay and Virtus Convertible
The main advantage of trading using opposite Mainstay and Virtus Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay position performs unexpectedly, Virtus 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 Virtus Convertible will offset losses from the drop in Virtus Convertible's long position.| Mainstay vs. Gmo Global Equity | Mainstay vs. The Gabelli Global | Mainstay vs. Calvert Global Energy | Mainstay vs. Ab Global Risk |
| Virtus Convertible vs. Abs Insights Emerging | Virtus Convertible vs. Harding Loevner Emerging | Virtus Convertible vs. Transamerica Emerging Markets | Virtus Convertible vs. Ep Emerging Markets |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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