Correlation Between Mainstay Pinestone and Mainstay Nerstone
Can any of the company-specific risk be diversified away by investing in both Mainstay Pinestone and Mainstay Nerstone 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 Pinestone and Mainstay Nerstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Pinestone International and Mainstay Nerstone Growth, you can compare the effects of market volatilities on Mainstay Pinestone and Mainstay Nerstone 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 Pinestone with a short position of Mainstay Nerstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Pinestone and Mainstay Nerstone.
Diversification Opportunities for Mainstay Pinestone and Mainstay Nerstone
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mainstay and Mainstay is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Pinestone Internation and Mainstay Nerstone Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Nerstone Growth and Mainstay Pinestone 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 Pinestone International are associated (or correlated) with Mainstay Nerstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Nerstone Growth has no effect on the direction of Mainstay Pinestone i.e., Mainstay Pinestone and Mainstay Nerstone go up and down completely randomly.
Pair Corralation between Mainstay Pinestone and Mainstay Nerstone
Assuming the 90 days horizon Mainstay Pinestone International is expected to under-perform the Mainstay Nerstone. But the mutual fund apears to be less risky and, when comparing its historical volatility, Mainstay Pinestone International is 1.5 times less risky than Mainstay Nerstone. The mutual fund trades about -0.26 of its potential returns per unit of risk. The Mainstay Nerstone Growth is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,934 in Mainstay Nerstone Growth on August 27, 2024 and sell it today you would earn a total of 77.00 from holding Mainstay Nerstone Growth or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Pinestone Internation vs. Mainstay Nerstone Growth
Performance |
| Timeline |
| Mainstay Pinestone |
| Mainstay Nerstone Growth |
Mainstay Pinestone and Mainstay Nerstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Pinestone and Mainstay Nerstone
The main advantage of trading using opposite Mainstay Pinestone and Mainstay Nerstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Pinestone position performs unexpectedly, Mainstay Nerstone 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 Nerstone will offset losses from the drop in Mainstay Nerstone's long position.| Mainstay Pinestone vs. Mainstay High Yield | Mainstay Pinestone vs. Mainstay Tax Free | Mainstay Pinestone vs. Mainstay Income Builder | Mainstay Pinestone vs. Mainstay Large Cap |
| Mainstay Nerstone vs. Mainstay High Yield | Mainstay Nerstone vs. Mainstay Tax Free | Mainstay Nerstone vs. Mainstay Income Builder | Mainstay Nerstone 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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