Correlation Between Mainstay High and Mainstay Pinestone
Can any of the company-specific risk be diversified away by investing in both Mainstay High and Mainstay Pinestone 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 High and Mainstay Pinestone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay High Yield and Mainstay Pinestone International, you can compare the effects of market volatilities on Mainstay High and Mainstay Pinestone 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 High with a short position of Mainstay Pinestone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay High and Mainstay Pinestone.
Diversification Opportunities for Mainstay High and Mainstay Pinestone
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mainstay and Mainstay is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay High Yield and Mainstay Pinestone Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Pinestone and Mainstay High 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 High Yield are associated (or correlated) with Mainstay Pinestone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Pinestone has no effect on the direction of Mainstay High i.e., Mainstay High and Mainstay Pinestone go up and down completely randomly.
Pair Corralation between Mainstay High and Mainstay Pinestone
Assuming the 90 days horizon Mainstay High is expected to generate 1.31 times less return on investment than Mainstay Pinestone. But when comparing it to its historical volatility, Mainstay High Yield is 4.75 times less risky than Mainstay Pinestone. It trades about 0.2 of its potential returns per unit of risk. Mainstay Pinestone International is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,467 in Mainstay Pinestone International on August 25, 2024 and sell it today you would earn a total of 161.00 from holding Mainstay Pinestone International or generate 10.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay High Yield vs. Mainstay Pinestone Internation
Performance |
| Timeline |
| Mainstay High Yield |
| Mainstay Pinestone |
Mainstay High and Mainstay Pinestone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay High and Mainstay Pinestone
The main advantage of trading using opposite Mainstay High and Mainstay Pinestone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay High position performs unexpectedly, Mainstay Pinestone 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 Pinestone will offset losses from the drop in Mainstay Pinestone's long position.| Mainstay High vs. Icon Financial Fund | Mainstay High vs. John Hancock Financial | Mainstay High vs. 1919 Financial Services | Mainstay High vs. Angel Oak Financial |
| Mainstay Pinestone vs. Mainstay High Yield | Mainstay Pinestone vs. Mainstay Tax Free | Mainstay Pinestone vs. Mainstay Income Builder | Mainstay Pinestone 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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