Correlation Between Mainstay Large and Mainstay Map
Can any of the company-specific risk be diversified away by investing in both Mainstay Large 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 Large 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 Large Cap and Mainstay Map Equity, you can compare the effects of market volatilities on Mainstay Large 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 Large with a short position of Mainstay Map. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Large and Mainstay Map.
Diversification Opportunities for Mainstay Large and Mainstay Map
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 Map Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Map Equity 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 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 Large i.e., Mainstay Large and Mainstay Map go up and down completely randomly.
Pair Corralation between Mainstay Large and Mainstay Map
Assuming the 90 days horizon Mainstay Large Cap is expected to generate 1.39 times more return on investment than Mainstay Map. However, Mainstay Large is 1.39 times more volatile than Mainstay Map Equity. It trades about 0.14 of its potential returns per unit of risk. Mainstay Map Equity is currently generating about 0.19 per unit of risk. If you would invest 619.00 in Mainstay Large Cap on August 29, 2024 and sell it today you would earn a total of 22.00 from holding Mainstay Large Cap or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mainstay Large Cap vs. Mainstay Map Equity
Performance |
| Timeline |
| Mainstay Large Cap |
| Mainstay Map Equity |
Mainstay Large and Mainstay Map Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Large and Mainstay Map
The main advantage of trading using opposite Mainstay Large and Mainstay Map positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Large 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 Large vs. Fidelity Series 1000 | Mainstay Large vs. Dana Large Cap | Mainstay Large vs. Dodge Cox Stock | Mainstay Large vs. Fundamental Large 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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