Correlation Between James Balanced and Mainstay Moderate
Can any of the company-specific risk be diversified away by investing in both James Balanced and Mainstay Moderate 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 James Balanced and Mainstay Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between James Balanced Golden and Mainstay Moderate Growth, you can compare the effects of market volatilities on James Balanced and Mainstay Moderate 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 James Balanced with a short position of Mainstay Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced and Mainstay Moderate.
Diversification Opportunities for James Balanced and Mainstay Moderate
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between James and Mainstay is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and Mainstay Moderate Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Moderate Growth and James Balanced 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 James Balanced Golden are associated (or correlated) with Mainstay Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Moderate Growth has no effect on the direction of James Balanced i.e., James Balanced and Mainstay Moderate go up and down completely randomly.
Pair Corralation between James Balanced and Mainstay Moderate
Assuming the 90 days horizon James Balanced Golden is expected to under-perform the Mainstay Moderate. In addition to that, James Balanced is 1.2 times more volatile than Mainstay Moderate Growth. It trades about -0.11 of its total potential returns per unit of risk. Mainstay Moderate Growth is currently generating about 0.0 per unit of volatility. If you would invest 1,655 in Mainstay Moderate Growth on September 12, 2024 and sell it today you would lose (1.00) from holding Mainstay Moderate Growth or give up 0.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
James Balanced Golden vs. Mainstay Moderate Growth
Performance |
| Timeline |
| James Balanced Golden |
| Mainstay Moderate Growth |
James Balanced and Mainstay Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced and Mainstay Moderate
The main advantage of trading using opposite James Balanced and Mainstay Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced position performs unexpectedly, Mainstay Moderate 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 Moderate will offset losses from the drop in Mainstay Moderate's long position.| James Balanced vs. Vanguard Wellesley Income | James Balanced vs. Vanguard Wellesley Income | James Balanced vs. Blackrock Multi Asset Income | James Balanced vs. The Hartford Balanced |
| Mainstay Moderate vs. Jhancock Global Equity | Mainstay Moderate vs. Artisan Global Unconstrained | Mainstay Moderate vs. Scharf Global Opportunity | Mainstay Moderate vs. Dreyfusstandish Global Fixed |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |