Correlation Between Mainstay Large and Mainstay Balanced
Can any of the company-specific risk be diversified away by investing in both Mainstay Large and Mainstay Balanced 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 Large and Mainstay Balanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Large Cap and Mainstay Balanced Fund, you can compare the effects of market volatilities on Mainstay Large and Mainstay Balanced 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 Large with a short position of Mainstay Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Large and Mainstay Balanced.
Diversification Opportunities for Mainstay Large and Mainstay Balanced
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Mainstay is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Large Cap and Mainstay Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Balanced and Mainstay Large 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 Large Cap are associated (or correlated) with Mainstay Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Balanced has no effect on the direction of Mainstay Large i.e., Mainstay Large and Mainstay Balanced go up and down completely randomly.
Pair Corralation between Mainstay Large and Mainstay Balanced
Assuming the 90 days horizon Mainstay Large Cap is expected to generate 2.3 times more return on investment than Mainstay Balanced. However, Mainstay Large is 2.3 times more volatile than Mainstay Balanced Fund. It trades about 0.17 of its potential returns per unit of risk. Mainstay Balanced Fund is currently generating about 0.2 per unit of risk. If you would invest 622.00 in Mainstay Large Cap on August 29, 2024 and sell it today you would earn a total of 28.00 from holding Mainstay Large Cap or generate 4.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Large Cap vs. Mainstay Balanced Fund
Performance |
| Timeline |
| Mainstay Large Cap |
| Mainstay Balanced |
Mainstay Large and Mainstay Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Large and Mainstay Balanced
The main advantage of trading using opposite Mainstay Large and Mainstay Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Large position performs unexpectedly, Mainstay Balanced 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 Balanced will offset losses from the drop in Mainstay Balanced's long position.| Mainstay Large vs. Oklahoma Municipal Fund | Mainstay Large vs. Touchstone Ohio Tax | Mainstay Large vs. Ambrus Core Bond | Mainstay Large vs. Versatile Bond Portfolio |
| Mainstay Balanced vs. Baird Smallmid Cap | Mainstay Balanced vs. Gmo Small Cap | Mainstay Balanced vs. The Hartford Small | Mainstay Balanced vs. Ab Small 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |