Correlation Between Advisory Research and Mainstay Cushing

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Advisory Research and Mainstay Cushing 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 Advisory Research and Mainstay Cushing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advisory Research Mlp and Mainstay Cushing Mlp, you can compare the effects of market volatilities on Advisory Research and Mainstay Cushing 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 Advisory Research with a short position of Mainstay Cushing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advisory Research and Mainstay Cushing.

Diversification Opportunities for Advisory Research and Mainstay Cushing

0.99
  Correlation Coefficient

No risk reduction

The 3 months correlation between Advisory and Mainstay is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Advisory Research Mlp and Mainstay Cushing Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Cushing Mlp and Advisory Research 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 Advisory Research Mlp are associated (or correlated) with Mainstay Cushing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Cushing Mlp has no effect on the direction of Advisory Research i.e., Advisory Research and Mainstay Cushing go up and down completely randomly.

Pair Corralation between Advisory Research and Mainstay Cushing

Assuming the 90 days horizon Advisory Research Mlp is expected to under-perform the Mainstay Cushing. But the mutual fund apears to be less risky and, when comparing its historical volatility, Advisory Research Mlp is 1.32 times less risky than Mainstay Cushing. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Mainstay Cushing Mlp is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  1,167  in Mainstay Cushing Mlp on September 16, 2024 and sell it today you would lose (8.00) from holding Mainstay Cushing Mlp or give up 0.69% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Advisory Research Mlp  vs.  Mainstay Cushing Mlp

 Performance 
       Timeline  
Advisory Research Mlp 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Advisory Research Mlp are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Advisory Research may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Mainstay Cushing Mlp 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Mainstay Cushing Mlp are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Mainstay Cushing may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Advisory Research and Mainstay Cushing Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Advisory Research and Mainstay Cushing

The main advantage of trading using opposite Advisory Research and Mainstay Cushing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advisory Research position performs unexpectedly, Mainstay Cushing 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 Cushing will offset losses from the drop in Mainstay Cushing's long position.
The idea behind Advisory Research Mlp and Mainstay Cushing Mlp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

Other Complementary Tools

ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories