Correlation Between Mainstay Income and Mainstay Wmc
Can any of the company-specific risk be diversified away by investing in both Mainstay Income and Mainstay Wmc 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 Wmc 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 Wmc Growth, you can compare the effects of market volatilities on Mainstay Income and Mainstay Wmc 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 Wmc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Income and Mainstay Wmc.
Diversification Opportunities for Mainstay Income and Mainstay Wmc
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Income Builder and Mainstay Wmc Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Wmc Growth 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 Wmc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Wmc Growth has no effect on the direction of Mainstay Income i.e., Mainstay Income and Mainstay Wmc go up and down completely randomly.
Pair Corralation between Mainstay Income and Mainstay Wmc
Assuming the 90 days horizon Mainstay Income is expected to generate 1.34 times less return on investment than Mainstay Wmc. But when comparing it to its historical volatility, Mainstay Income Builder is 2.26 times less risky than Mainstay Wmc. It trades about 0.22 of its potential returns per unit of risk. Mainstay Wmc Growth is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5,116 in Mainstay Wmc Growth on November 3, 2024 and sell it today you would earn a total of 173.00 from holding Mainstay Wmc Growth or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Income Builder vs. Mainstay Wmc Growth
Performance |
| Timeline |
| Mainstay Income Builder |
| Mainstay Wmc Growth |
Mainstay Income and Mainstay Wmc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Income and Mainstay Wmc
The main advantage of trading using opposite Mainstay Income and Mainstay Wmc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Income position performs unexpectedly, Mainstay Wmc 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 Wmc will offset losses from the drop in Mainstay Wmc's long position.| Mainstay Income vs. Vy Clarion Real | Mainstay Income vs. Fidelity Real Estate | Mainstay Income vs. Tiaa Cref Real Estate | Mainstay Income vs. Jhancock Real Estate |
| Mainstay Wmc vs. Prudential Financial Services | Mainstay Wmc vs. Financial Industries Fund | Mainstay Wmc vs. Vanguard Financials Index | Mainstay Wmc vs. Transamerica Financial Life |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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