Correlation Between Mainstay Income and Mainstay Map
Can any of the company-specific risk be diversified away by investing in both Mainstay Income and Mainstay Map 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 Map 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 Map Equity, you can compare the effects of market volatilities on Mainstay Income and Mainstay Map 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 Map. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Income and Mainstay Map.
Diversification Opportunities for Mainstay Income and Mainstay Map
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mainstay and Mainstay is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Income Builder and Mainstay Map Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Map Equity 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 Map. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Map Equity has no effect on the direction of Mainstay Income i.e., Mainstay Income and Mainstay Map go up and down completely randomly.
Pair Corralation between Mainstay Income and Mainstay Map
Assuming the 90 days horizon Mainstay Income is expected to generate 2.57 times less return on investment than Mainstay Map. But when comparing it to its historical volatility, Mainstay Income Builder is 1.68 times less risky than Mainstay Map. It trades about 0.12 of its potential returns per unit of risk. Mainstay Map Equity is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,187 in Mainstay Map Equity on August 29, 2024 and sell it today you would earn a total of 79.00 from holding Mainstay Map Equity or generate 3.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mainstay Income Builder vs. Mainstay Map Equity
Performance |
| Timeline |
| Mainstay Income Builder |
| Mainstay Map Equity |
Mainstay Income and Mainstay Map Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Income and Mainstay Map
The main advantage of trading using opposite Mainstay Income and Mainstay Map positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Income position performs unexpectedly, Mainstay Map 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 Map will offset losses from the drop in Mainstay Map's long position.| Mainstay Income vs. Artisan Small Cap | Mainstay Income vs. Small Pany Growth | Mainstay Income vs. Tax Managed Mid Small | Mainstay Income vs. Us Small Cap |
| Mainstay Map vs. American Funds Conservative | Mainstay Map vs. Massmutual Premier Diversified | Mainstay Map vs. Huber Capital Diversified | Mainstay Map vs. Pioneer Diversified High |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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