Correlation Between Adams Diversified and Mainstay Moderate
Can any of the company-specific risk be diversified away by investing in both Adams Diversified and Mainstay Moderate 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 Adams Diversified and Mainstay Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adams Diversified Equity and Mainstay Moderate Allocation, you can compare the effects of market volatilities on Adams Diversified and Mainstay Moderate 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 Adams Diversified with a short position of Mainstay Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adams Diversified and Mainstay Moderate.
Diversification Opportunities for Adams Diversified and Mainstay Moderate
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Adams and Mainstay is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Adams Diversified Equity and Mainstay Moderate Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Moderate and Adams Diversified 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 Adams Diversified Equity are associated (or correlated) with Mainstay Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Moderate has no effect on the direction of Adams Diversified i.e., Adams Diversified and Mainstay Moderate go up and down completely randomly.
Pair Corralation between Adams Diversified and Mainstay Moderate
Considering the 90-day investment horizon Adams Diversified Equity is expected to generate 1.99 times more return on investment than Mainstay Moderate. However, Adams Diversified is 1.99 times more volatile than Mainstay Moderate Allocation. It trades about 0.09 of its potential returns per unit of risk. Mainstay Moderate Allocation is currently generating about 0.15 per unit of risk. If you would invest 2,047 in Adams Diversified Equity on September 13, 2024 and sell it today you would earn a total of 26.00 from holding Adams Diversified Equity or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adams Diversified Equity vs. Mainstay Moderate Allocation
Performance |
| Timeline |
| Adams Diversified Equity |
| Mainstay Moderate |
Adams Diversified and Mainstay Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adams Diversified and Mainstay Moderate
The main advantage of trading using opposite Adams Diversified and Mainstay Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adams Diversified position performs unexpectedly, Mainstay Moderate 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 Moderate will offset losses from the drop in Mainstay Moderate's long position.| Adams Diversified vs. Tri Continental Closed | Adams Diversified vs. SRH Total Return | Adams Diversified vs. Putnam Municipal Opportunities | Adams Diversified vs. Tortoise Energy Independence |
| Mainstay Moderate vs. Tiaa Cref Small Cap Blend | Mainstay Moderate vs. Pgim Jennison Diversified | Mainstay Moderate vs. Massmutual Premier Diversified | Mainstay Moderate vs. Adams Diversified Equity |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |