Correlation Between Pro Blend and Mainstay Balanced
Can any of the company-specific risk be diversified away by investing in both Pro Blend 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 Pro Blend and Mainstay Balanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pro Blend Moderate Term and Mainstay Balanced Fund, you can compare the effects of market volatilities on Pro Blend 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 Pro Blend with a short position of Mainstay Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pro Blend and Mainstay Balanced.
Diversification Opportunities for Pro Blend and Mainstay Balanced
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pro and Mainstay is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Pro Blend Moderate Term and Mainstay Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Balanced and Pro Blend 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 Pro Blend Moderate Term 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 Pro Blend i.e., Pro Blend and Mainstay Balanced go up and down completely randomly.
Pair Corralation between Pro Blend and Mainstay Balanced
Assuming the 90 days horizon Pro Blend Moderate Term is expected to generate 0.7 times more return on investment than Mainstay Balanced. However, Pro Blend Moderate Term is 1.44 times less risky than Mainstay Balanced. It trades about 0.11 of its potential returns per unit of risk. Mainstay Balanced Fund is currently generating about 0.05 per unit of risk. If you would invest 1,368 in Pro Blend Moderate Term on September 14, 2024 and sell it today you would earn a total of 137.00 from holding Pro Blend Moderate Term or generate 10.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pro Blend Moderate Term vs. Mainstay Balanced Fund
Performance |
| Timeline |
| Pro Blend Moderate |
| Mainstay Balanced |
Pro Blend and Mainstay Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pro Blend and Mainstay Balanced
The main advantage of trading using opposite Pro Blend and Mainstay Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pro Blend 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.| Pro Blend vs. Manning Napier Callodine | Pro Blend vs. Manning Napier Callodine | Pro Blend vs. Manning Napier Callodine | Pro Blend vs. Pro Blend Extended Term |
| Mainstay Balanced vs. Mainstay High Yield | Mainstay Balanced vs. Mainstay Tax Free | Mainstay Balanced vs. Mainstay Income Builder | Mainstay Balanced vs. Mainstay Large Cap |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |