Correlation Between Mainstay Balanced and Mainstay Floating
Can any of the company-specific risk be diversified away by investing in both Mainstay Balanced and Mainstay Floating 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 Floating 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 Floating Rate, you can compare the effects of market volatilities on Mainstay Balanced and Mainstay Floating 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 Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Balanced and Mainstay Floating.
Diversification Opportunities for Mainstay Balanced and Mainstay Floating
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mainstay and Mainstay is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Balanced Fund and Mainstay Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Floating Rate 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 Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Floating Rate has no effect on the direction of Mainstay Balanced i.e., Mainstay Balanced and Mainstay Floating go up and down completely randomly.
Pair Corralation between Mainstay Balanced and Mainstay Floating
Assuming the 90 days horizon Mainstay Balanced Fund is expected to under-perform the Mainstay Floating. In addition to that, Mainstay Balanced is 2.88 times more volatile than Mainstay Floating Rate. It trades about -0.11 of its total potential returns per unit of risk. Mainstay Floating Rate is currently generating about 0.04 per unit of volatility. If you would invest 885.00 in Mainstay Floating Rate on November 28, 2024 and sell it today you would earn a total of 1.00 from holding Mainstay Floating Rate or generate 0.11% 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. Mainstay Floating Rate
Performance |
| Timeline |
| Mainstay Balanced |
| Mainstay Floating Rate |
Mainstay Balanced and Mainstay Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Balanced and Mainstay Floating
The main advantage of trading using opposite Mainstay Balanced and Mainstay Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Balanced position performs unexpectedly, Mainstay Floating 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 Floating will offset losses from the drop in Mainstay Floating's long position.| Mainstay Balanced vs. Gamco Natural Resources | Mainstay Balanced vs. Invesco Energy Fund | Mainstay Balanced vs. Franklin Natural Resources | Mainstay Balanced vs. Salient Mlp Energy |
| Mainstay Floating vs. John Hancock Government | Mainstay Floating vs. Franklin Adjustable Government | Mainstay Floating vs. Us Government Securities | Mainstay Floating vs. Dunham Porategovernment Bond |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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