Correlation Between Mainstay Fiera and Mainstay
Can any of the company-specific risk be diversified away by investing in both Mainstay Fiera and Mainstay 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 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 Sp 500, you can compare the effects of market volatilities on Mainstay Fiera and Mainstay 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Fiera and Mainstay.
Diversification Opportunities for Mainstay Fiera and Mainstay
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Mainstay is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Fiera Smid and Mainstay Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Sp 500 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. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Sp 500 has no effect on the direction of Mainstay Fiera i.e., Mainstay Fiera and Mainstay go up and down completely randomly.
Pair Corralation between Mainstay Fiera and Mainstay
Assuming the 90 days horizon Mainstay Fiera Smid is expected to generate 1.67 times more return on investment than Mainstay. However, Mainstay Fiera is 1.67 times more volatile than Mainstay Sp 500. It trades about 0.39 of its potential returns per unit of risk. Mainstay Sp 500 is currently generating about 0.36 per unit of risk. If you would invest 1,709 in Mainstay Fiera Smid on September 1, 2024 and sell it today you would earn a total of 187.00 from holding Mainstay Fiera Smid or generate 10.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Fiera Smid vs. Mainstay Sp 500
Performance |
| Timeline |
| Mainstay Fiera Smid |
| Mainstay Sp 500 |
Mainstay Fiera and Mainstay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Fiera and Mainstay
The main advantage of trading using opposite Mainstay Fiera and Mainstay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Fiera position performs unexpectedly, Mainstay 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 will offset losses from the drop in Mainstay's long position.| Mainstay Fiera vs. Ab Bond Inflation | Mainstay Fiera vs. California Bond Fund | Mainstay Fiera vs. Multisector Bond Sma | Mainstay Fiera vs. Versatile Bond Portfolio |
| Mainstay vs. T Rowe Price | Mainstay vs. T Rowe Price | Mainstay vs. Tax Managed Large Cap | Mainstay vs. T Rowe Price |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance |