Correlation Between Mainstay Moderate and Stone Ridge
Can any of the company-specific risk be diversified away by investing in both Mainstay Moderate and Stone Ridge 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 Moderate and Stone Ridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Moderate Etf and Stone Ridge Diversified, you can compare the effects of market volatilities on Mainstay Moderate and Stone Ridge 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 Moderate with a short position of Stone Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Moderate and Stone Ridge.
Diversification Opportunities for Mainstay Moderate and Stone Ridge
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mainstay and Stone is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Moderate Etf and Stone Ridge Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stone Ridge Diversified and Mainstay Moderate 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 Moderate Etf are associated (or correlated) with Stone Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stone Ridge Diversified has no effect on the direction of Mainstay Moderate i.e., Mainstay Moderate and Stone Ridge go up and down completely randomly.
Pair Corralation between Mainstay Moderate and Stone Ridge
Assuming the 90 days horizon Mainstay Moderate Etf is expected to generate 3.54 times more return on investment than Stone Ridge. However, Mainstay Moderate is 3.54 times more volatile than Stone Ridge Diversified. It trades about 0.17 of its potential returns per unit of risk. Stone Ridge Diversified is currently generating about -0.11 per unit of risk. If you would invest 1,252 in Mainstay Moderate Etf on November 3, 2024 and sell it today you would earn a total of 26.00 from holding Mainstay Moderate Etf or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Moderate Etf vs. Stone Ridge Diversified
Performance |
| Timeline |
| Mainstay Moderate Etf |
| Stone Ridge Diversified |
Mainstay Moderate and Stone Ridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Moderate and Stone Ridge
The main advantage of trading using opposite Mainstay Moderate and Stone Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Moderate position performs unexpectedly, Stone Ridge 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 Stone Ridge will offset losses from the drop in Stone Ridge's long position.| Mainstay Moderate vs. Mainstay High Yield | Mainstay Moderate vs. Mainstay Tax Free | Mainstay Moderate vs. Mainstay Income Builder | Mainstay Moderate vs. Mainstay Large Cap |
| Stone Ridge vs. Angel Oak Financial | Stone Ridge vs. Goldman Sachs Financial | Stone Ridge vs. Schwab Government Money | Stone Ridge vs. Mesirow Financial Small |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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