Correlation Between Deutsche Multi-asset and Mainstay Wmc
Can any of the company-specific risk be diversified away by investing in both Deutsche Multi-asset and Mainstay Wmc 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 Deutsche Multi-asset and Mainstay Wmc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Multi Asset Moderate and Mainstay Wmc Value, you can compare the effects of market volatilities on Deutsche Multi-asset and Mainstay Wmc 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 Deutsche Multi-asset with a short position of Mainstay Wmc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Multi-asset and Mainstay Wmc.
Diversification Opportunities for Deutsche Multi-asset and Mainstay Wmc
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Deutsche and Mainstay is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Multi Asset Moderate and Mainstay Wmc Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Wmc Value and Deutsche Multi-asset 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 Deutsche Multi Asset Moderate are associated (or correlated) with Mainstay Wmc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Wmc Value has no effect on the direction of Deutsche Multi-asset i.e., Deutsche Multi-asset and Mainstay Wmc go up and down completely randomly.
Pair Corralation between Deutsche Multi-asset and Mainstay Wmc
Assuming the 90 days horizon Deutsche Multi-asset is expected to generate 1.15 times less return on investment than Mainstay Wmc. But when comparing it to its historical volatility, Deutsche Multi Asset Moderate is 1.55 times less risky than Mainstay Wmc. It trades about 0.2 of its potential returns per unit of risk. Mainstay Wmc Value is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 3,274 in Mainstay Wmc Value on June 8, 2025 and sell it today you would earn a total of 183.00 from holding Mainstay Wmc Value or generate 5.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deutsche Multi Asset Moderate vs. Mainstay Wmc Value
Performance |
| Timeline |
| Deutsche Multi Asset |
| Mainstay Wmc Value |
Deutsche Multi-asset and Mainstay Wmc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Multi-asset and Mainstay Wmc
The main advantage of trading using opposite Deutsche Multi-asset and Mainstay Wmc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Multi-asset position performs unexpectedly, Mainstay Wmc 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 Wmc will offset losses from the drop in Mainstay Wmc's long position.| Deutsche Multi-asset vs. Deutsche Gnma Fund | Deutsche Multi-asset vs. Deutsche Short Term Municipal | Deutsche Multi-asset vs. Deutsche Short Term Municipal | Deutsche Multi-asset vs. Deutsche Science And |
| Mainstay Wmc vs. Pace International Emerging | Mainstay Wmc vs. The Hartford Emerging | Mainstay Wmc vs. Dodge Cox Emerging | Mainstay Wmc vs. Ashmore 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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