Correlation Between Victory Incore and Mainstay Convertible
Can any of the company-specific risk be diversified away by investing in both Victory Incore 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 Victory Incore and Mainstay Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory Incore Investment and Mainstay Vertible Fund, you can compare the effects of market volatilities on Victory Incore 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 Victory Incore with a short position of Mainstay Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Incore and Mainstay Convertible.
Diversification Opportunities for Victory Incore and Mainstay Convertible
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Victory and Mainstay is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Victory Incore Investment and Mainstay Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Convertible and Victory Incore 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 Victory Incore Investment 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 Victory Incore i.e., Victory Incore and Mainstay Convertible go up and down completely randomly.
Pair Corralation between Victory Incore and Mainstay Convertible
Assuming the 90 days horizon Victory Incore is expected to generate 2.08 times less return on investment than Mainstay Convertible. But when comparing it to its historical volatility, Victory Incore Investment is 1.28 times less risky than Mainstay Convertible. It trades about 0.17 of its potential returns per unit of risk. Mainstay Vertible Fund is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 1,864 in Mainstay Vertible Fund on June 13, 2025 and sell it today you would earn a total of 126.00 from holding Mainstay Vertible Fund or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victory Incore Investment vs. Mainstay Vertible Fund
Performance |
| Timeline |
| Victory Incore Investment |
| Mainstay Convertible |
Victory Incore and Mainstay Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Incore and Mainstay Convertible
The main advantage of trading using opposite Victory Incore and Mainstay Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Incore 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.| Victory Incore vs. Victory Sycamore Small | Victory Incore vs. Victory Diversified Stock | Victory Incore vs. Northern Income Equity |
| Mainstay Convertible vs. Jhvit Core Bond | Mainstay Convertible vs. Transamerica Intermediate Muni | Mainstay Convertible vs. Pace Strategic Fixed | Mainstay Convertible vs. California Municipal Portfolio |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| 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 | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |