Correlation Between Mainstay Pinestone and Mainstay Short
Can any of the company-specific risk be diversified away by investing in both Mainstay Pinestone and Mainstay Short 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 Short 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 Short Duration, you can compare the effects of market volatilities on Mainstay Pinestone and Mainstay Short 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 Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Pinestone and Mainstay Short.
Diversification Opportunities for Mainstay Pinestone and Mainstay Short
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mainstay and Mainstay is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Pinestone Internation and Mainstay Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Short Duration 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 Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Short Duration has no effect on the direction of Mainstay Pinestone i.e., Mainstay Pinestone and Mainstay Short go up and down completely randomly.
Pair Corralation between Mainstay Pinestone and Mainstay Short
Assuming the 90 days horizon Mainstay Pinestone International is expected to generate 7.2 times more return on investment than Mainstay Short. However, Mainstay Pinestone is 7.2 times more volatile than Mainstay Short Duration. It trades about 0.05 of its potential returns per unit of risk. Mainstay Short Duration is currently generating about 0.26 per unit of risk. If you would invest 1,467 in Mainstay Pinestone International on August 25, 2024 and sell it today you would earn a total of 161.00 from holding Mainstay Pinestone International or generate 10.97% 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 Short Duration
Performance |
| Timeline |
| Mainstay Pinestone |
| Mainstay Short Duration |
Mainstay Pinestone and Mainstay Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Pinestone and Mainstay Short
The main advantage of trading using opposite Mainstay Pinestone and Mainstay Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Pinestone position performs unexpectedly, Mainstay Short 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 Short will offset losses from the drop in Mainstay Short'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 Short vs. International Investors Gold | Mainstay Short vs. Sprott Gold Equity | Mainstay Short vs. Wells Fargo Advantage | Mainstay Short vs. Wells Fargo Advantage |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |