Correlation Between Mainstay Pinestone and Franklin
Can any of the company-specific risk be diversified away by investing in both Mainstay Pinestone and Franklin 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 Franklin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Pinestone Equity and Franklin Government Money, you can compare the effects of market volatilities on Mainstay Pinestone and Franklin 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 Franklin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Pinestone and Franklin.
Diversification Opportunities for Mainstay Pinestone and Franklin
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mainstay and Franklin is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Pinestone Equity and Franklin Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Government Money 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 Equity are associated (or correlated) with Franklin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Government Money has no effect on the direction of Mainstay Pinestone i.e., Mainstay Pinestone and Franklin go up and down completely randomly.
Pair Corralation between Mainstay Pinestone and Franklin
If you would invest 1,951 in Mainstay Pinestone Equity on August 31, 2024 and sell it today you would earn a total of 64.00 from holding Mainstay Pinestone Equity or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Pinestone Equity vs. Franklin Government Money
Performance |
| Timeline |
| Mainstay Pinestone Equity |
| Franklin Government Money |
Mainstay Pinestone and Franklin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Pinestone and Franklin
The main advantage of trading using opposite Mainstay Pinestone and Franklin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Pinestone position performs unexpectedly, Franklin 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 Franklin will offset losses from the drop in Franklin's long position.| Mainstay Pinestone vs. Aquagold International | Mainstay Pinestone vs. Morningstar Unconstrained Allocation | Mainstay Pinestone vs. Thrivent High Yield | Mainstay Pinestone vs. Via Renewables |
| Franklin vs. Vanguard Total Stock | Franklin vs. Vanguard 500 Index | Franklin vs. Vanguard Total Stock | Franklin vs. Vanguard Total Stock |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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