Correlation Between Mainstay Income and Mainstay Moderate
Can any of the company-specific risk be diversified away by investing in both Mainstay Income and Mainstay Moderate 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 Moderate 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 Moderate Allocation, you can compare the effects of market volatilities on Mainstay Income and Mainstay Moderate 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 Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Income and Mainstay Moderate.
Diversification Opportunities for Mainstay Income and Mainstay Moderate
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mainstay and Mainstay is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Income Builder and Mainstay Moderate Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Moderate 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 Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Moderate has no effect on the direction of Mainstay Income i.e., Mainstay Income and Mainstay Moderate go up and down completely randomly.
Pair Corralation between Mainstay Income and Mainstay Moderate
Assuming the 90 days horizon Mainstay Income is expected to generate 2.29 times less return on investment than Mainstay Moderate. In addition to that, Mainstay Income is 1.1 times more volatile than Mainstay Moderate Allocation. It trades about 0.05 of its total potential returns per unit of risk. Mainstay Moderate Allocation is currently generating about 0.13 per unit of volatility. If you would invest 1,477 in Mainstay Moderate Allocation on September 15, 2024 and sell it today you would earn a total of 15.00 from holding Mainstay Moderate Allocation or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Income Builder vs. Mainstay Moderate Allocation
Performance |
| Timeline |
| Mainstay Income Builder |
| Mainstay Moderate |
Mainstay Income and Mainstay Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Income and Mainstay Moderate
The main advantage of trading using opposite Mainstay Income and Mainstay Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Income position performs unexpectedly, Mainstay Moderate 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 Moderate will offset losses from the drop in Mainstay Moderate's long position.| Mainstay Income vs. Smallcap Growth Fund | Mainstay Income vs. Sp Smallcap 600 | Mainstay Income vs. Champlain Small | Mainstay Income vs. Cardinal Small Cap |
| Mainstay Moderate vs. Mainstay High Yield | Mainstay Moderate vs. Mainstay Tax Free | Mainstay Moderate vs. Mainstay Income Builder | Mainstay Moderate 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |