Correlation Between Growth Fund and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Mainstay Large 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 Growth Fund and Mainstay Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Mainstay Large Cap, you can compare the effects of market volatilities on Growth Fund and Mainstay Large 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 Growth Fund with a short position of Mainstay Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Mainstay Large.
Diversification Opportunities for Growth Fund and Mainstay Large
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Growth and Mainstay is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap and Growth 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 Growth Fund Of are associated (or correlated) with Mainstay Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of Growth Fund i.e., Growth Fund and Mainstay Large go up and down completely randomly.
Pair Corralation between Growth Fund and Mainstay Large
Assuming the 90 days horizon Growth Fund Of is expected to generate 0.84 times more return on investment than Mainstay Large. However, Growth Fund Of is 1.18 times less risky than Mainstay Large. It trades about 0.37 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about 0.28 per unit of risk. If you would invest 7,661 in Growth Fund Of on September 1, 2024 and sell it today you would earn a total of 515.00 from holding Growth Fund Of or generate 6.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Growth Fund Of vs. Mainstay Large Cap
Performance |
| Timeline |
| Growth Fund |
| Mainstay Large Cap |
Growth Fund and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Mainstay Large
The main advantage of trading using opposite Growth Fund and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Mainstay Large 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 Large will offset losses from the drop in Mainstay Large's long position.| Growth Fund vs. Europacific Growth Fund | Growth Fund vs. Capital World Growth | Growth Fund vs. American Funds Fundamental | Growth Fund vs. Washington Mutual Investors |
| Mainstay Large vs. Mainstay Tax Free | Mainstay Large vs. Mainstay Large Cap | Mainstay Large vs. Mainstay Large Cap | Mainstay Large vs. Mainstay Mackay High |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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