Correlation Between Mainstay Fiera and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Mainstay Fiera and Mainstay High 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 High 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 High Yield, you can compare the effects of market volatilities on Mainstay Fiera and Mainstay High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Fiera and Mainstay High.
Diversification Opportunities for Mainstay Fiera and Mainstay High
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Fiera Smid and Mainstay High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay High Yield 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 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay High Yield has no effect on the direction of Mainstay Fiera i.e., Mainstay Fiera and Mainstay High go up and down completely randomly.
Pair Corralation between Mainstay Fiera and Mainstay High
Assuming the 90 days horizon Mainstay Fiera Smid is expected to generate 5.13 times more return on investment than Mainstay High. However, Mainstay Fiera is 5.13 times more volatile than Mainstay High Yield. It trades about 0.05 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.17 per unit of risk. If you would invest 1,558 in Mainstay Fiera Smid on August 31, 2024 and sell it today you would earn a total of 262.00 from holding Mainstay Fiera Smid or generate 16.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 91.96% |
| Values | Daily Returns |
Mainstay Fiera Smid vs. Mainstay High Yield
Performance |
| Timeline |
| Mainstay Fiera Smid |
| Mainstay High Yield |
Mainstay Fiera and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Fiera and Mainstay High
The main advantage of trading using opposite Mainstay Fiera and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Fiera position performs unexpectedly, Mainstay High 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 High will offset losses from the drop in Mainstay High's long position.| Mainstay Fiera vs. T Rowe Price | Mainstay Fiera vs. T Rowe Price | Mainstay Fiera vs. T Rowe Price | Mainstay Fiera vs. T Rowe Price |
| Mainstay High vs. American Funds Inflation | Mainstay High vs. The Hartford Inflation | Mainstay High vs. Aqr Managed Futures | Mainstay High vs. Ab Bond Inflation |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |