Correlation Between Mainstay Candriam and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Mainstay Candriam 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 Candriam 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 Candriam Emerging and Mainstay High Yield, you can compare the effects of market volatilities on Mainstay Candriam 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 Candriam with a short position of Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Candriam and Mainstay High.
Diversification Opportunities for Mainstay Candriam and Mainstay High
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mainstay and Mainstay is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Candriam Emerging 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 Candriam 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 Candriam Emerging 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 Candriam i.e., Mainstay Candriam and Mainstay High go up and down completely randomly.
Pair Corralation between Mainstay Candriam and Mainstay High
Assuming the 90 days horizon Mainstay Candriam Emerging is expected to generate 3.85 times more return on investment than Mainstay High. However, Mainstay Candriam is 3.85 times more volatile than Mainstay High Yield. It trades about 0.04 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.14 per unit of risk. If you would invest 887.00 in Mainstay Candriam Emerging on August 26, 2024 and sell it today you would earn a total of 149.00 from holding Mainstay Candriam Emerging or generate 16.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Candriam Emerging vs. Mainstay High Yield
Performance |
| Timeline |
| Mainstay Candriam |
| Mainstay High Yield |
Mainstay Candriam and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Candriam and Mainstay High
The main advantage of trading using opposite Mainstay Candriam and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Candriam 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 Candriam vs. Small Pany Growth | Mainstay Candriam vs. Qs Growth Fund | Mainstay Candriam vs. Smallcap Growth Fund | Mainstay Candriam vs. Qs Moderate Growth |
| Mainstay High vs. Enhanced Large Pany | Mainstay High vs. Pace Large Growth | Mainstay High vs. Qs Large Cap | Mainstay High vs. Gmo Equity Allocation |
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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