Correlation Between Mainstay Balanced and Ab Bond
Can any of the company-specific risk be diversified away by investing in both Mainstay Balanced and Ab Bond 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 Ab Bond 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 Ab Bond Inflation, you can compare the effects of market volatilities on Mainstay Balanced and Ab Bond 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 Ab Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Balanced and Ab Bond.
Diversification Opportunities for Mainstay Balanced and Ab Bond
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mainstay and ANBIX is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Balanced Fund and Ab Bond Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Bond Inflation 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 Ab Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Bond Inflation has no effect on the direction of Mainstay Balanced i.e., Mainstay Balanced and Ab Bond go up and down completely randomly.
Pair Corralation between Mainstay Balanced and Ab Bond
Assuming the 90 days horizon Mainstay Balanced Fund is expected to generate 1.78 times more return on investment than Ab Bond. However, Mainstay Balanced is 1.78 times more volatile than Ab Bond Inflation. It trades about 0.11 of its potential returns per unit of risk. Ab Bond Inflation is currently generating about 0.08 per unit of risk. If you would invest 2,762 in Mainstay Balanced Fund on September 2, 2024 and sell it today you would earn a total of 528.00 from holding Mainstay Balanced Fund or generate 19.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Balanced Fund vs. Ab Bond Inflation
Performance |
| Timeline |
| Mainstay Balanced |
| Ab Bond Inflation |
Mainstay Balanced and Ab Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Balanced and Ab Bond
The main advantage of trading using opposite Mainstay Balanced and Ab Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Balanced position performs unexpectedly, Ab Bond 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 Ab Bond will offset losses from the drop in Ab Bond's long position.| Mainstay Balanced vs. Mainstay Tax Free | Mainstay Balanced vs. Mainstay Large Cap | Mainstay Balanced vs. Mainstay Large Cap | Mainstay Balanced vs. Mainstay Large Cap |
| Ab Bond vs. Ab Global E | Ab Bond vs. Ab Global E | Ab Bond vs. Ab Global E | Ab Bond vs. Ab Minnesota Portfolio |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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