Correlation Between Aam Select and Mainstay Balanced
Can any of the company-specific risk be diversified away by investing in both Aam Select 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 Aam Select and Mainstay Balanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aam Select Income and Mainstay Balanced Fund, you can compare the effects of market volatilities on Aam Select 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 Aam Select with a short position of Mainstay Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aam Select and Mainstay Balanced.
Diversification Opportunities for Aam Select and Mainstay Balanced
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aam and Mainstay is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Aam Select Income and Mainstay Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Balanced and Aam Select 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 Aam Select Income 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 Aam Select i.e., Aam Select and Mainstay Balanced go up and down completely randomly.
Pair Corralation between Aam Select and Mainstay Balanced
Assuming the 90 days horizon Aam Select Income is expected to under-perform the Mainstay Balanced. But the mutual fund apears to be less risky and, when comparing its historical volatility, Aam Select Income is 1.6 times less risky than Mainstay Balanced. The mutual fund trades about -0.11 of its potential returns per unit of risk. The Mainstay Balanced Fund is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 3,198 in Mainstay Balanced Fund on August 26, 2024 and sell it today you would earn a total of 65.00 from holding Mainstay Balanced Fund or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aam Select Income vs. Mainstay Balanced Fund
Performance |
| Timeline |
| Aam Select Income |
| Mainstay Balanced |
Aam Select and Mainstay Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aam Select and Mainstay Balanced
The main advantage of trading using opposite Aam Select and Mainstay Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aam Select 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.| Aam Select vs. Ashmore Emerging Markets | Aam Select vs. Pioneer Money Market | Aam Select vs. Rbc Funds Trust | Aam Select vs. Legg Mason Partners |
| Mainstay Balanced vs. Arrow Managed Futures | Mainstay Balanced vs. Western Asset Municipal | Mainstay Balanced vs. Balanced Fund Investor | Mainstay Balanced vs. Aam Select 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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