Correlation Between Mainstay Fiera and Mainstay Balanced
Can any of the company-specific risk be diversified away by investing in both Mainstay Fiera and Mainstay Balanced 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 Mainstay Fiera and Mainstay Balanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Fiera Smid and Mainstay Balanced Fund, you can compare the effects of market volatilities on Mainstay Fiera and Mainstay Balanced 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 Mainstay Fiera with a short position of Mainstay Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Fiera and Mainstay Balanced.
Diversification Opportunities for Mainstay Fiera and Mainstay Balanced
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Fiera Smid and Mainstay Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Balanced and Mainstay Fiera 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 Mainstay Fiera Smid are associated (or correlated) with Mainstay Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Balanced has no effect on the direction of Mainstay Fiera i.e., Mainstay Fiera and Mainstay Balanced go up and down completely randomly.
Pair Corralation between Mainstay Fiera and Mainstay Balanced
Assuming the 90 days horizon Mainstay Fiera Smid is expected to generate 2.06 times more return on investment than Mainstay Balanced. However, Mainstay Fiera is 2.06 times more volatile than Mainstay Balanced Fund. It trades about 0.17 of its potential returns per unit of risk. Mainstay Balanced Fund is currently generating about 0.33 per unit of risk. If you would invest 1,736 in Mainstay Fiera Smid on November 4, 2024 and sell it today you would earn a total of 55.00 from holding Mainstay Fiera Smid or generate 3.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Fiera Smid vs. Mainstay Balanced Fund
Performance |
| Timeline |
| Mainstay Fiera Smid |
| Mainstay Balanced |
Mainstay Fiera and Mainstay Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Fiera and Mainstay Balanced
The main advantage of trading using opposite Mainstay Fiera and Mainstay Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Fiera position performs unexpectedly, Mainstay Balanced 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 Balanced will offset losses from the drop in Mainstay Balanced's long position.| Mainstay Fiera vs. Ivy Natural Resources | Mainstay Fiera vs. Invesco Energy Fund | Mainstay Fiera vs. Salient Mlp Energy | Mainstay Fiera vs. Energy Services Fund |
| Mainstay Balanced vs. Pnc Balanced Allocation | Mainstay Balanced vs. Qs Moderate Growth | Mainstay Balanced vs. Tax Managed Large Cap | Mainstay Balanced vs. Morningstar Global Income |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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