Correlation Between Mainstay Income and Mainstay Fiera
Can any of the company-specific risk be diversified away by investing in both Mainstay Income and Mainstay Fiera 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 Income and Mainstay Fiera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Income Builder and Mainstay Fiera Smid, you can compare the effects of market volatilities on Mainstay Income and Mainstay Fiera 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 Income with a short position of Mainstay Fiera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Income and Mainstay Fiera.
Diversification Opportunities for Mainstay Income and Mainstay Fiera
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mainstay and Mainstay is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Income Builder and Mainstay Fiera Smid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Fiera Smid and Mainstay Income 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 Income Builder are associated (or correlated) with Mainstay Fiera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Fiera Smid has no effect on the direction of Mainstay Income i.e., Mainstay Income and Mainstay Fiera go up and down completely randomly.
Pair Corralation between Mainstay Income and Mainstay Fiera
Assuming the 90 days horizon Mainstay Income Builder is expected to generate 0.5 times more return on investment than Mainstay Fiera. However, Mainstay Income Builder is 1.99 times less risky than Mainstay Fiera. It trades about 0.1 of its potential returns per unit of risk. Mainstay Fiera Smid is currently generating about 0.05 per unit of risk. If you would invest 1,859 in Mainstay Income Builder on August 25, 2024 and sell it today you would earn a total of 239.00 from holding Mainstay Income Builder or generate 12.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Income Builder vs. Mainstay Fiera Smid
Performance |
| Timeline |
| Mainstay Income Builder |
| Mainstay Fiera Smid |
Mainstay Income and Mainstay Fiera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Income and Mainstay Fiera
The main advantage of trading using opposite Mainstay Income and Mainstay Fiera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Income position performs unexpectedly, Mainstay Fiera 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 Fiera will offset losses from the drop in Mainstay Fiera's long position.| Mainstay Income vs. Aqr Large Cap | Mainstay Income vs. T Rowe Price | Mainstay Income vs. Goldman Sachs Large | Mainstay Income vs. Knights Of Umbus |
| Mainstay Fiera vs. Mainstay High Yield | Mainstay Fiera vs. Mainstay Tax Free | Mainstay Fiera vs. Mainstay Income Builder | Mainstay Fiera 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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