Correlation Between Balanced Fund and Mainstay Conservative
Can any of the company-specific risk be diversified away by investing in both Balanced Fund and Mainstay Conservative 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 Balanced Fund and Mainstay Conservative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Balanced Fund Retail and Mainstay Conservative Etf, you can compare the effects of market volatilities on Balanced Fund and Mainstay Conservative 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 Balanced Fund with a short position of Mainstay Conservative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balanced Fund and Mainstay Conservative.
Diversification Opportunities for Balanced Fund and Mainstay Conservative
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Balanced and Mainstay is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Balanced Fund Retail and Mainstay Conservative Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Conservative Etf and Balanced Fund 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 Balanced Fund Retail are associated (or correlated) with Mainstay Conservative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Conservative Etf has no effect on the direction of Balanced Fund i.e., Balanced Fund and Mainstay Conservative go up and down completely randomly.
Pair Corralation between Balanced Fund and Mainstay Conservative
Assuming the 90 days horizon Balanced Fund is expected to generate 1.19 times less return on investment than Mainstay Conservative. In addition to that, Balanced Fund is 1.69 times more volatile than Mainstay Conservative Etf. It trades about 0.03 of its total potential returns per unit of risk. Mainstay Conservative Etf is currently generating about 0.07 per unit of volatility. If you would invest 952.00 in Mainstay Conservative Etf on November 27, 2024 and sell it today you would earn a total of 145.00 from holding Mainstay Conservative Etf or generate 15.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Balanced Fund Retail vs. Mainstay Conservative Etf
Performance |
| Timeline |
| Balanced Fund Retail |
| Mainstay Conservative Etf |
Balanced Fund and Mainstay Conservative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Balanced Fund and Mainstay Conservative
The main advantage of trading using opposite Balanced Fund and Mainstay Conservative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balanced Fund position performs unexpectedly, Mainstay Conservative 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 Conservative will offset losses from the drop in Mainstay Conservative's long position.| Balanced Fund vs. Muirfield Fund Retail | Balanced Fund vs. Dynamic Growth Fund | Balanced Fund vs. Infrastructure Fund Retail | Balanced Fund vs. Quantex Fund Retail |
| Mainstay Conservative vs. Us Government Securities | Mainstay Conservative vs. Us Government Securities | Mainstay Conservative vs. Aig Government Money | Mainstay Conservative vs. Virtus Seix Government |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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