Correlation Between Matson Money and Mainstay Conservative
Can any of the company-specific risk be diversified away by investing in both Matson Money 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 Matson Money and Mainstay Conservative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matson Money Fixed and Mainstay Conservative Etf, you can compare the effects of market volatilities on Matson Money 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 Matson Money with a short position of Mainstay Conservative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matson Money and Mainstay Conservative.
Diversification Opportunities for Matson Money and Mainstay Conservative
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MATSON and MainStay is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Matson Money Fixed 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 Matson Money 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 Matson Money Fixed 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 Matson Money i.e., Matson Money and Mainstay Conservative go up and down completely randomly.
Pair Corralation between Matson Money and Mainstay Conservative
Assuming the 90 days horizon Matson Money is expected to generate 3.1 times less return on investment than Mainstay Conservative. But when comparing it to its historical volatility, Matson Money Fixed is 3.47 times less risky than Mainstay Conservative. It trades about 0.14 of its potential returns per unit of risk. Mainstay Conservative Etf is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,103 in Mainstay Conservative Etf on August 28, 2024 and sell it today you would earn a total of 11.00 from holding Mainstay Conservative Etf or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Matson Money Fixed vs. Mainstay Conservative Etf
Performance |
| Timeline |
| Matson Money Fixed |
| Mainstay Conservative Etf |
Matson Money and Mainstay Conservative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matson Money and Mainstay Conservative
The main advantage of trading using opposite Matson Money and Mainstay Conservative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matson Money 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.| Matson Money vs. Vanguard Total Stock | Matson Money vs. Vanguard 500 Index | Matson Money vs. Vanguard Total Stock | Matson Money vs. Vanguard Total Stock |
| Mainstay Conservative vs. Mainstay High Yield | Mainstay Conservative vs. Mainstay Tax Free | Mainstay Conservative vs. Mainstay Income Builder | Mainstay Conservative 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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