Correlation Between Multimanager Lifestyle and Mainstay Growth
Can any of the company-specific risk be diversified away by investing in both Multimanager Lifestyle and Mainstay Growth 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 Multimanager Lifestyle and Mainstay Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multimanager Lifestyle Aggressive and Mainstay Growth Etf, you can compare the effects of market volatilities on Multimanager Lifestyle and Mainstay Growth 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 Multimanager Lifestyle with a short position of Mainstay Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multimanager Lifestyle and Mainstay Growth.
Diversification Opportunities for Multimanager Lifestyle and Mainstay Growth
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between MULTIMANAGER and Mainstay is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Multimanager Lifestyle Aggress and Mainstay Growth Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Growth Etf and Multimanager Lifestyle 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 Multimanager Lifestyle Aggressive are associated (or correlated) with Mainstay Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Growth Etf has no effect on the direction of Multimanager Lifestyle i.e., Multimanager Lifestyle and Mainstay Growth go up and down completely randomly.
Pair Corralation between Multimanager Lifestyle and Mainstay Growth
Assuming the 90 days horizon Multimanager Lifestyle Aggressive is expected to generate 1.11 times more return on investment than Mainstay Growth. However, Multimanager Lifestyle is 1.11 times more volatile than Mainstay Growth Etf. It trades about 0.08 of its potential returns per unit of risk. Mainstay Growth Etf is currently generating about 0.08 per unit of risk. If you would invest 1,156 in Multimanager Lifestyle Aggressive on September 3, 2024 and sell it today you would earn a total of 401.00 from holding Multimanager Lifestyle Aggressive or generate 34.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multimanager Lifestyle Aggress vs. Mainstay Growth Etf
Performance |
| Timeline |
| Multimanager Lifestyle |
| Mainstay Growth Etf |
Multimanager Lifestyle and Mainstay Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multimanager Lifestyle and Mainstay Growth
The main advantage of trading using opposite Multimanager Lifestyle and Mainstay Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multimanager Lifestyle position performs unexpectedly, Mainstay Growth 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 Growth will offset losses from the drop in Mainstay Growth's long position.| Multimanager Lifestyle vs. American Funds Growth | Multimanager Lifestyle vs. American Funds Growth | Multimanager Lifestyle vs. Franklin Mutual Shares | Multimanager Lifestyle vs. Franklin Mutual Shares |
| Mainstay Growth vs. Multimanager Lifestyle Aggressive | Mainstay Growth vs. T Rowe Price | Mainstay Growth vs. Pace High Yield | Mainstay Growth vs. Nuveen High Income |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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