Correlation Between Mainstay Large and Mainstay Large

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Mainstay Large and Mainstay Large 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 Large 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 Large Cap, you can compare the effects of market volatilities on Mainstay Large and Mainstay Large 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 Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Large and Mainstay Large.

Diversification Opportunities for Mainstay Large and Mainstay Large

MainstayMainstayDiversified AwayMainstayMainstayDiversified Away100%
0.94
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Mainstay and Mainstay is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Large Cap and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap 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 Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of Mainstay Large i.e., Mainstay Large and Mainstay Large go up and down completely randomly.

Pair Corralation between Mainstay Large and Mainstay Large

Assuming the 90 days horizon Mainstay Large Cap is expected to generate 0.9 times more return on investment than Mainstay Large. However, Mainstay Large Cap is 1.11 times less risky than Mainstay Large. It trades about 0.0 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about -0.12 per unit of risk. If you would invest  454.00  in Mainstay Large Cap on November 25, 2024 and sell it today you would earn a total of  0.00  from holding Mainstay Large Cap or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy95.24%
ValuesDaily Returns

Mainstay Large Cap  vs.  Mainstay Large Cap

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -35-30-25-20-15-10-50
JavaScript chart by amCharts 3.21.15MLABX MLAAX
       Timeline  
Mainstay Large Cap 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Mainstay Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's fundamental drivers remain fairly strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb4.555.566.5
Mainstay Large Cap 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Mainstay Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb9.51010.51111.512

Mainstay Large and Mainstay Large Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-7.04-5.27-3.5-1.740.01.563.164.756.34 0.020.030.040.050.06
JavaScript chart by amCharts 3.21.15MLABX MLAAX
       Returns  

Pair Trading with Mainstay Large and Mainstay Large

The main advantage of trading using opposite Mainstay Large and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Large position performs unexpectedly, Mainstay Large 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 Large will offset losses from the drop in Mainstay Large's long position.
The idea behind Mainstay Large Cap and Mainstay Large Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

Other Complementary Tools

Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine