Correlation Between Fabxx and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Fabxx 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 Fabxx and Mainstay High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fabxx and Mainstay High Yield, you can compare the effects of market volatilities on Fabxx 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 Fabxx with a short position of Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fabxx and Mainstay High.
Diversification Opportunities for Fabxx and Mainstay High
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fabxx and Mainstay is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Fabxx 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 Fabxx 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 Fabxx 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 Fabxx i.e., Fabxx and Mainstay High go up and down completely randomly.
Pair Corralation between Fabxx and Mainstay High
Assuming the 90 days horizon Fabxx is expected to under-perform the Mainstay High. In addition to that, Fabxx is 70.82 times more volatile than Mainstay High Yield. It trades about -0.23 of its total potential returns per unit of risk. Mainstay High Yield is currently generating about 0.15 per unit of volatility. If you would invest 519.00 in Mainstay High Yield on September 5, 2024 and sell it today you would earn a total of 3.00 from holding Mainstay High Yield or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fabxx vs. Mainstay High Yield
Performance |
| Timeline |
| Fabxx |
| Mainstay High Yield |
Fabxx and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fabxx and Mainstay High
The main advantage of trading using opposite Fabxx and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fabxx 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.| Fabxx vs. Blackrock Conservative Prprdptfinstttnl | Fabxx vs. Jhancock Diversified Macro | Fabxx vs. Adams Diversified Equity | Fabxx vs. Pgim Conservative Retirement |
| Mainstay High vs. M Large Cap | Mainstay High vs. Fidelity Series 1000 | Mainstay High vs. Avantis Large Cap | Mainstay High vs. Aqr 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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