Correlation Between Mainstay Large and Mainstay New
Can any of the company-specific risk be diversified away by investing in both Mainstay Large and Mainstay New 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 New 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 New York, you can compare the effects of market volatilities on Mainstay Large and Mainstay New 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 New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Large and Mainstay New.
Diversification Opportunities for Mainstay Large and Mainstay New
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mainstay and Mainstay is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Large Cap and Mainstay New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay New York 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 New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay New York has no effect on the direction of Mainstay Large i.e., Mainstay Large and Mainstay New go up and down completely randomly.
Pair Corralation between Mainstay Large and Mainstay New
Assuming the 90 days horizon Mainstay Large Cap is expected to generate 5.93 times more return on investment than Mainstay New. However, Mainstay Large is 5.93 times more volatile than Mainstay New York. It trades about 0.07 of its potential returns per unit of risk. Mainstay New York is currently generating about 0.18 per unit of risk. If you would invest 502.00 in Mainstay Large Cap on August 26, 2024 and sell it today you would earn a total of 138.00 from holding Mainstay Large Cap or generate 27.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Large Cap vs. Mainstay New York
Performance |
| Timeline |
| Mainstay Large Cap |
| Mainstay New York |
Mainstay Large and Mainstay New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Large and Mainstay New
The main advantage of trading using opposite Mainstay Large and Mainstay New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Large position performs unexpectedly, Mainstay New 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 New will offset losses from the drop in Mainstay New's long position.| Mainstay Large vs. Fidelity Advisor Diversified | Mainstay Large vs. Evaluator Conservative Rms | Mainstay Large vs. Aqr Diversified Arbitrage | Mainstay Large vs. American Funds Conservative |
| Mainstay New vs. Mainstay High Yield | Mainstay New vs. Mainstay Tax Free | Mainstay New vs. Mainstay Income Builder | Mainstay New 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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