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 Etf, 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
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mainstay and Mainstay is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Income Builder and Mainstay Growth Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Growth Etf 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 Etf 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
Assuming the 90 days horizon Mainstay Income is expected to generate 1.12 times less return on investment than Mainstay Growth. But when comparing it to its historical volatility, Mainstay Income Builder is 1.29 times less risky than Mainstay Growth. It trades about 0.13 of its potential returns per unit of risk. Mainstay Growth Etf is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,217 in Mainstay Growth Etf on August 25, 2024 and sell it today you would earn a total of 254.00 from holding Mainstay Growth Etf or generate 20.87% 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 Growth Etf
Performance |
| Timeline |
| Mainstay Income Builder |
| Mainstay Growth Etf |
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. Aqr Large Cap | Mainstay Income vs. T Rowe Price | Mainstay Income vs. Goldman Sachs Large | Mainstay Income vs. Knights Of Umbus |
| Mainstay Growth vs. Mainstay High Yield | Mainstay Growth vs. Mainstay Tax Free | Mainstay Growth vs. Mainstay Income Builder | Mainstay Growth 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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