Correlation Between Mainstay Balanced and Mainstay
Can any of the company-specific risk be diversified away by investing in both Mainstay Balanced and Mainstay 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 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 Sp 500, you can compare the effects of market volatilities on Mainstay Balanced and Mainstay 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Balanced and Mainstay.
Diversification Opportunities for Mainstay Balanced and Mainstay
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Mainstay is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Balanced Fund and Mainstay Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Sp 500 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. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Sp 500 has no effect on the direction of Mainstay Balanced i.e., Mainstay Balanced and Mainstay go up and down completely randomly.
Pair Corralation between Mainstay Balanced and Mainstay
Assuming the 90 days horizon Mainstay Balanced is expected to generate 1.3 times less return on investment than Mainstay. But when comparing it to its historical volatility, Mainstay Balanced Fund is 1.63 times less risky than Mainstay. It trades about 0.2 of its potential returns per unit of risk. Mainstay Sp 500 is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 6,475 in Mainstay Sp 500 on August 29, 2024 and sell it today you would earn a total of 199.00 from holding Mainstay Sp 500 or generate 3.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Balanced Fund vs. Mainstay Sp 500
Performance |
| Timeline |
| Mainstay Balanced |
| Mainstay Sp 500 |
Mainstay Balanced and Mainstay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Balanced and Mainstay
The main advantage of trading using opposite Mainstay Balanced and Mainstay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Balanced position performs unexpectedly, Mainstay 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 will offset losses from the drop in Mainstay's long position.| Mainstay Balanced vs. Pace High Yield | Mainstay Balanced vs. Vanguard High Yield Tax Exempt | Mainstay Balanced vs. Strategic Allocation Aggressive | Mainstay Balanced vs. Ppm High Yield |
| Mainstay vs. Vanguard Total Stock | Mainstay vs. Vanguard 500 Index | Mainstay vs. Vanguard Total Stock | Mainstay vs. Vanguard Total Stock |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |