Correlation Between Mainstay Mon and Commodities Strategy
Can any of the company-specific risk be diversified away by investing in both Mainstay Mon and Commodities Strategy 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 Mon and Commodities Strategy 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 Commodities Strategy Fund, you can compare the effects of market volatilities on Mainstay Mon and Commodities Strategy 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 Mon with a short position of Commodities Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Mon and Commodities Strategy.
Diversification Opportunities for Mainstay Mon and Commodities Strategy
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mainstay and Commodities is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Mon Stock and Commodities Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commodities Strategy and Mainstay Mon 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 Commodities Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commodities Strategy has no effect on the direction of Mainstay Mon i.e., Mainstay Mon and Commodities Strategy go up and down completely randomly.
Pair Corralation between Mainstay Mon and Commodities Strategy
Assuming the 90 days horizon Mainstay Mon Stock is expected to generate 0.7 times more return on investment than Commodities Strategy. However, Mainstay Mon Stock is 1.42 times less risky than Commodities Strategy. It trades about 0.11 of its potential returns per unit of risk. Commodities Strategy Fund is currently generating about 0.02 per unit of risk. If you would invest 3,045 in Mainstay Mon Stock on September 12, 2024 and sell it today you would earn a total of 1,014 from holding Mainstay Mon Stock or generate 33.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Mon Stock vs. Commodities Strategy Fund
Performance |
| Timeline |
| Mainstay Mon Stock |
| Commodities Strategy |
Mainstay Mon and Commodities Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Mon and Commodities Strategy
The main advantage of trading using opposite Mainstay Mon and Commodities Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Mon position performs unexpectedly, Commodities Strategy 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 Commodities Strategy will offset losses from the drop in Commodities Strategy's long position.| Mainstay Mon vs. American Mutual Fund | Mainstay Mon vs. Transamerica Large Cap | Mainstay Mon vs. Qs Large Cap | Mainstay Mon vs. M Large Cap |
| Commodities Strategy vs. Basic Materials Fund | Commodities Strategy vs. Energy Services Fund | Commodities Strategy vs. Energy Fund Investor | Commodities Strategy vs. Real Estate 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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