Correlation Between Mainstay Moderate and American Funds
Can any of the company-specific risk be diversified away by investing in both Mainstay Moderate and American Funds 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 American Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Moderate Growth and American Funds The, you can compare the effects of market volatilities on Mainstay Moderate and American Funds 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Moderate and American Funds.
Diversification Opportunities for Mainstay Moderate and American Funds
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and American is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Moderate Growth and American Funds The in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds 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 Growth are associated (or correlated) with American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds has no effect on the direction of Mainstay Moderate i.e., Mainstay Moderate and American Funds go up and down completely randomly.
Pair Corralation between Mainstay Moderate and American Funds
Assuming the 90 days horizon Mainstay Moderate Growth is expected to generate 1.26 times more return on investment than American Funds. However, Mainstay Moderate is 1.26 times more volatile than American Funds The. It trades about 0.09 of its potential returns per unit of risk. American Funds The is currently generating about 0.11 per unit of risk. If you would invest 1,353 in Mainstay Moderate Growth on August 31, 2024 and sell it today you would earn a total of 312.00 from holding Mainstay Moderate Growth or generate 23.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
Mainstay Moderate Growth vs. American Funds The
Performance |
| Timeline |
| Mainstay Moderate Growth |
| American Funds |
Mainstay Moderate and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Moderate and American Funds
The main advantage of trading using opposite Mainstay Moderate and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Moderate position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| Mainstay Moderate vs. American Funds The | Mainstay Moderate vs. Income Fund Of | Mainstay Moderate vs. Income Fund Of | Mainstay Moderate vs. Income Fund Of |
| American Funds vs. Federated Ultrashort Bond | American Funds vs. California Bond Fund | American Funds vs. Dreyfusstandish Global Fixed | American Funds vs. Rationalpier 88 Convertible |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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