Correlation Between Mainstay Income and Mainstay Growth
Can any of the company-specific risk be diversified away by investing in both Mainstay Income and Mainstay Growth 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 Growth 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 Growth Allocation, you can compare the effects of market volatilities on Mainstay Income and Mainstay Growth 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 Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Income and Mainstay Growth.
Diversification Opportunities for Mainstay Income and Mainstay Growth
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mainstay and Mainstay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Income Builder and Mainstay Growth Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Growth Allo 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 Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Growth Allo has no effect on the direction of Mainstay Income i.e., Mainstay Income and Mainstay Growth go up and down completely randomly.
Pair Corralation between Mainstay Income and Mainstay Growth
If you would invest 1,648 in Mainstay Growth Allocation on August 30, 2024 and sell it today you would earn a total of 72.00 from holding Mainstay Growth Allocation or generate 4.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Mainstay Income Builder vs. Mainstay Growth Allocation
Performance |
| Timeline |
| Mainstay Income Builder |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Mainstay Growth Allo |
Mainstay Income and Mainstay Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Income and Mainstay Growth
The main advantage of trading using opposite Mainstay Income and Mainstay Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Income position performs unexpectedly, Mainstay Growth 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 Growth will offset losses from the drop in Mainstay Growth's long position.| Mainstay Income vs. Western Asset Diversified | Mainstay Income vs. Adams Diversified Equity | Mainstay Income vs. Sentinel Small Pany | Mainstay Income vs. Lord Abbett Diversified |
| Mainstay Growth vs. Nationwide Inflation Protected Securities | Mainstay Growth vs. Asg Managed Futures | Mainstay Growth vs. Lord Abbett Inflation | Mainstay Growth vs. Fidelity Advisor 529 |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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