Correlation Between Mainstay Balanced and Mainstay Winslow
Can any of the company-specific risk be diversified away by investing in both Mainstay Balanced and Mainstay Winslow 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 Mainstay Balanced and Mainstay Winslow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Balanced Fund and Mainstay Winslow Large, you can compare the effects of market volatilities on Mainstay Balanced and Mainstay Winslow 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 Mainstay Balanced with a short position of Mainstay Winslow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Balanced and Mainstay Winslow.
Diversification Opportunities for Mainstay Balanced and Mainstay Winslow
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Balanced Fund and Mainstay Winslow Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Winslow Large and Mainstay 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 Mainstay Balanced Fund are associated (or correlated) with Mainstay Winslow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Winslow Large has no effect on the direction of Mainstay Balanced i.e., Mainstay Balanced and Mainstay Winslow go up and down completely randomly.
Pair Corralation between Mainstay Balanced and Mainstay Winslow
Assuming the 90 days horizon Mainstay Balanced is expected to generate 1.52 times less return on investment than Mainstay Winslow. But when comparing it to its historical volatility, Mainstay Balanced Fund is 3.27 times less risky than Mainstay Winslow. It trades about 0.06 of its potential returns per unit of risk. Mainstay Winslow Large is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 827.00 in Mainstay Winslow Large on September 12, 2024 and sell it today you would earn a total of 94.00 from holding Mainstay Winslow Large or generate 11.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Balanced Fund vs. Mainstay Winslow Large
Performance |
| Timeline |
| Mainstay Balanced |
| Mainstay Winslow Large |
Mainstay Balanced and Mainstay Winslow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Balanced and Mainstay Winslow
The main advantage of trading using opposite Mainstay Balanced and Mainstay Winslow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Balanced position performs unexpectedly, Mainstay Winslow 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 Winslow will offset losses from the drop in Mainstay Winslow's long position.| Mainstay Balanced vs. Pgim Jennison Technology | Mainstay Balanced vs. Blackrock Science Technology | Mainstay Balanced vs. Mfs Technology Fund | Mainstay Balanced vs. Vanguard Information Technology |
| Mainstay Winslow vs. Mainstay Sp 500 | Mainstay Winslow vs. Mainstay Balanced Fund | Mainstay Winslow vs. Mainstay Balanced Fund |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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