Correlation Between Mainstay Common and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Mainstay Common and Mainstay High 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 Common and Mainstay High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Mon Stock and Mainstay High Yield, you can compare the effects of market volatilities on Mainstay Common and Mainstay High 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 Common with a short position of Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Common and Mainstay High.
Diversification Opportunities for Mainstay Common and Mainstay High
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Mon Stock and Mainstay High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay High Yield and Mainstay Common 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 Mon Stock are associated (or correlated) with Mainstay High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay High Yield has no effect on the direction of Mainstay Common i.e., Mainstay Common and Mainstay High go up and down completely randomly.
Pair Corralation between Mainstay Common and Mainstay High
Assuming the 90 days horizon Mainstay Mon Stock is expected to generate 5.24 times more return on investment than Mainstay High. However, Mainstay Common is 5.24 times more volatile than Mainstay High Yield. It trades about 0.15 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.22 per unit of risk. If you would invest 3,643 in Mainstay Mon Stock on September 1, 2024 and sell it today you would earn a total of 567.00 from holding Mainstay Mon Stock or generate 15.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Mainstay Mon Stock vs. Mainstay High Yield
Performance |
| Timeline |
| Mainstay Mon Stock |
| Mainstay High Yield |
Mainstay Common and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Common and Mainstay High
The main advantage of trading using opposite Mainstay Common and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Common position performs unexpectedly, Mainstay High 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 High will offset losses from the drop in Mainstay High's long position.| Mainstay Common vs. Mainstay Tax Free | Mainstay Common vs. Mainstay Large Cap | Mainstay Common vs. Mainstay Large Cap | Mainstay Common vs. Mainstay Large Cap |
| Mainstay High vs. Mainstay Tax Free | Mainstay High vs. Mainstay Large Cap | Mainstay High vs. Mainstay Large Cap | Mainstay High vs. Mainstay Large Cap |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |