Correlation Between Income Fund and Mainstay Growth
Can any of the company-specific risk be diversified away by investing in both Income Fund and Mainstay Growth 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 Income Fund and Mainstay Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Income Fund Of and Mainstay Growth Etf, you can compare the effects of market volatilities on Income Fund and Mainstay Growth 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 Income Fund with a short position of Mainstay Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Income Fund and Mainstay Growth.
Diversification Opportunities for Income Fund and Mainstay Growth
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Income and Mainstay is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Income Fund Of and Mainstay Growth Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Growth Etf and Income Fund 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 Income Fund Of are associated (or correlated) with Mainstay Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Growth Etf has no effect on the direction of Income Fund i.e., Income Fund and Mainstay Growth go up and down completely randomly.
Pair Corralation between Income Fund and Mainstay Growth
Assuming the 90 days horizon Income Fund is expected to generate 2.85 times less return on investment than Mainstay Growth. But when comparing it to its historical volatility, Income Fund Of is 1.54 times less risky than Mainstay Growth. It trades about 0.1 of its potential returns per unit of risk. Mainstay Growth Etf is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,461 in Mainstay Growth Etf on August 28, 2024 and sell it today you would earn a total of 39.00 from holding Mainstay Growth Etf or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Income Fund Of vs. Mainstay Growth Etf
Performance |
| Timeline |
| Income Fund |
| Mainstay Growth Etf |
Income Fund and Mainstay Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Income Fund and Mainstay Growth
The main advantage of trading using opposite Income Fund and Mainstay Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Income Fund position performs unexpectedly, Mainstay Growth 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 Growth will offset losses from the drop in Mainstay Growth's long position.| Income Fund vs. Capital World Growth | Income Fund vs. New Perspective Fund | Income Fund vs. Growth Fund Of | Income Fund vs. Smallcap World Fund |
| Mainstay Growth vs. Siit Emerging Markets | Mainstay Growth vs. Rbc Bluebay Emerging | Mainstay Growth vs. Franklin Emerging Market | Mainstay Growth vs. Shelton 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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